By George Glover

Earnings from Altria Group will show whether spending on cigarettes and other tobacco products is holding up, amid worries that President Donald Trump's tariffs could drive up inflation.

The Philip Morris USA parent, which makes Marlboro cigarettes, Skoal smokeless tobacco, and other tobacco-related products, is set to report its first-quarter results ahead of Tuesday's opening bell.

Analysts are expecting adjusted earnings of $1.19 a share on revenue of $4.62 billion, according to a FactSet poll. A year ago, Altria reported earnings of $1.15 a share on revenue of $4.72 billion.

Marlboro sales are likely to be a key focus for the market. Deutsche Bank analyst Damian McNeela expects cigarette volumes to drop 12%, which he said reflected "ongoing industrywide volume pressure and consumer down-trading." He's forecasting that revenue for the company's smokable product division will drop 2.7%.

Altria's On! nicotine pouches could be a bright spot, McNeela added. He's forecasting that sales volume for the pouches, which are marketed as an alternative to cigarettes, will surge 40%, helping sales volume for the company's oral tobacco segment to climb 1% overall.

The Deutsche Bank analyst rates Altria as a Hold with a $60 price target that implies shares can climb about 3%.

As of Monday's close, Altria shares were up 11% this year. The benchmark S&P 500 has dropped 6% in 2025.

Write to George Glover at george.glover@dowjones.com

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April 28, 2025 17:00 ET (21:00 GMT)

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