Altria’s investment in Canadian cannabis company Cronos ate into the tobacco company’s first-quarter profits, the company said Thursday.
Marlboro cigarette maker Altria’s earnings slid 41% from the year before, missing analysts estimates on both profit and revenue. Its stock slid 6% Thursday, closing at $51.41.
Altria’s first-quarter net income of $1.12 billion, or 60 cents per share, fell from $1.89 billion, or $1 per share a year earlier. It generated $4.39 billion in net revenue during the first quarter, sliding 6 percent from the prior year and missing Wall Street forecasts of $4.59 billion, according to average estimates compiled by Refinitiv.
Excluding unrealized losses associated with its investment in Cronos and other items, Altria earned 90 cents per share, less than the 92 cents per share