MO – Market expectations are for Uniform ROA to decline, but management is confident about the on! brand and OCI growth

• Altria Group, Inc. (MO:USA) currently trades below historical averages relative to UAFRS-based (Uniform) earnings, with an 11.7x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about the on! brand and Operating Companies Income (OCI) growth
  
  

• Specifically, management is confident in their packaging of on! brand products and that the on! brand is attracting female tobacco consumers. In addition, they are confident higher pricing and lower costs are driving Operating Companies Income (OCI) growth. Management also is confident in ABI’s fourth and first quarter performance