British American Tobacco plc BTI posted stronger-than-expected full year earnings and boosted its dividend as the group prepares to close its $50 billion takeover of Reynolds American RAI British American Tobacco plc posted stronger-than-expected full year earnings and boosted its dividend as the group prepares to close its $50 billion takeover of Reynolds American BAT said full year diluted earnings per share came in at 247.5 pence each, an 18.8% increase from 2015 and ahead of the FactSet consensus of 242 pence. Full year revenues, however, were marginally shy of analysts’ forecasts, coming in at A 14.751 billion against a A 14.88 billion estimate.
Category: Tobacco
Altria: 5 Fascinating Facts You Ought to Know
In overcoming legal threats, regulatory hurdles, and a general trend away from smoking, Altria has nevertheless managed to keep its key figures on its income statement moving higher. The five facts discussed below are particularly interesting for those who haven’t followed the tobacco company closely.
What You Need to Know About the Reynolds American/British American Tobacco Merger
First off, the details. British American already owns about 42% of Reynolds’ business and the proposal that was initially made last October was for the remaining 58%.
BAT agrees to buy Reynolds for $49 billion
British American Tobacco has agreed a $49.4 billion takeover of U.S. rival Reynolds American Inc , creating the world’s biggest listed tobacco company after it increased an earlier offer by more than $2 billion. BAT, which already owned 42 percent of Reynolds, will pay $29.44 in cash and 0.5260 BAT shares for each Reynolds share, it said, a 26 percent premium over the price of the stock on Oct. 20, the day before BAT’s first offer was made public.
Altria Group Inc.’s Biggest Win in 2016
A host of challenges continues to face Altria, including ongoing pressure from regulators, consumer advocates, and plaintiffs’ attorneys seeking to cause difficulties for the tobacco giant. Yet even though some favorable moves with its core business were noteworthy in 2016, Altria’s biggest win came in avoiding an even bigger hassle from the IRS.
Better Buy: Altria Group Inc vs. Verizon Communications Inc.
Let’s not beat around the bush: on the surface, this seems like a very odd pairing. Usually, in these “Better Buy” articles, we pit two companies against each other that are in the same field.
How Risky Will 2017 Be for Philip Morris International?
Tobacco has been a long-term winner for investors, and although it has been a separate publicly traded company for less than a decade, Philip Morris International has done just as well as many of its longer-tenured peers in the industry. However, Philip Morris faces several different types of risks, and each of them has caused investors some concern in the past year.
Tobacco Stocks: What to Watch in 2017
Tobacco stocks have been extremely successful investments for long-term shareholders, and as the calendar changes, investors are looking closely at what will affect tobacco stocks in 2017. Stalwarts like Altria Group from Altria gave U.S. investors another opportunity to jump into the international tobacco area as the company went up against British American Tobacco and other international competitors.