Altrias decision to react proactively to a regulatory decomposition of tobacco products appealing to teenagers is a positive one that appeals to the company to appeal antitrust attorneys and tackle the competitive pressure of rival Juul, an analyst said Thursday.
MO, + 1.49%
said that it is to withdraw MarkTen Elite and Apex from MarkTen's e-cigarette pillows from the store shelves until either the US Food and Drug Administration's sale to sell them or the question If teenagers who rely on nicotine are otherwise resolved, the company says in the third quarter's earnings release.
The company will also stop selling products with flavors other than regular tobacco, mint or menthol. The FDA recently announced a review of teenagers and e-cigarette smoking, with top official commissioner Scott Gottlieb rejecting an epidemic driven by the availability of non-smoking products. Much of his ears were aimed at Juul Labs, who has marketed a line of electronic products with flavors, including "crème brûlée" and "coal cucumber", which contains high levels of nicotine and resonates strongly with young people.
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Related: Why smoking among teens has reached historical downturn
Gottlieb said measures To convert adult smokers into less harmful e-cigarettes should not be at the expense of younger people's health. The FDA plans to release evidence of the findings next month and considers a ban on flavored e-cigarettes and additional restrictions on online sales.
"Although we do not think we have a current problem with access to youth or the use of our E-vapor products, we take this action because we will not risk contributing to the problem," Altria Chief Executive Howard Willard told analysts at a call to discuss quarterly results, according to a FactSet transcript. "In addition, we will support federal legislation to establish somebody's minimum age to buy tobacco products."
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The company estimates that about 5% of adult tobacco users are legally aged through 20 and account for about 2% of the cigarette industry, 4% of smoke-free industry and 1
"We are watching Altria's proactive decision to remove MarkTen Elite & Apex pod products and to limit its cig-a-like product flavors pending a FDA market order or clarity about access to youngsters as positive," said Wells Fargo analyst. Bonnie Herzog, who repeated her appreciation of the warehouse.
Willard disappointed those investors who hoped today's release would be accompanied by some kind of news about a move in the cannabis sector. Upon request for the challenge of preparing plans, the CEO replied that the company exploring opportunities in the room, on the grounds that cannabis is not always forbidden.
I continue to explain in more detail how we look at the category because we are relatively early in our exploration, "he said. 19659002] Canada's move to complete the legalization of cannabis for adult recreational use and the increasing number of US states that allow it for either medical or leisure use, has played spe-cially request that a legal sector emerge that may be worth billions of dollars. Drinking companies, especially Constellation Brands Inc.
STZ, + 0.83%
has made drafts in the sector; Constellation has invested $ 4 billion in Canada's Canopy Growth Corp., and others are said to be aware of the sector.
For all MarketWatch coverage of Canadian legalization, click here.
Tobacco companies are generally regarded as a natural fit for the sector, but major actors are cautious about federal law, which continues to classify weeds as a Schedule I substance and places it in the same category as heroin and cocaine. This ban has made it impossible for companies to have bank accounts with institutions that are federally supported and blocked them from capital markets.
Altria had a net income of $ 1.94 billion, or $ 1.03 per share, for the third quarter, up from $ 1.87 billion, or 97 cents per share, for the same period last year. Adjusted earnings per share came to $ 1.08. Actual consensus of $ 1.06.
Revenues rose to $ 6.84 billion from $ 6.73 billion while net sales from shares were $ 5.29 billion. The FactSet consensus was for revenues of 5.21 billion dollars.
The company reduced its full-year EPS guidance to a range of $ 3.95 to $ 4.03, which compares with a consensus of $ 4.00.
The shares were flat in early afternoon trading, but are about 13% in 2018 while Dow Jones Industrial Average
DJIA, + 1.59%
is up 0.6% and S & P 500
SPX, + 1.93%
has achieved 0.7%.
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