Altria beats Q1 estimates with strong EPS and revenue, but downgraded to hold amid inflation risks.

Altria reported a strong Q1 with earnings per share of $1.32 and revenue of $4.76 billion, both increasing year-over-year. The company's pricing power and growth in smokeless products helped offset declines in traditional cigarette sales, supporting margin expansion and stable fundamentals. Despite a 23% stock rally over the past year, the analyst downgraded Altria to hold due to potential risks from inflation and macroeconomic uncertainty. Management reaffirmed 2024 EPS guidance of $5.56–$5.72, supported by a 6% dividend yield, robust share buybacks, and a strong balance sheet, indicating near-term dividend safety.