I remain upbeat about the shares of Altria Group, a US based manufacturer of cigarettes and other tobacco products. Recently, the company issued decent financials for the fourth quarter of 2015. Revenues net of excise taxes increased 2.5% y-o-y to $4.73 bn backed by higher sales in all the segments. In Smokeable Products Segment, revenues net of excise taxes increased 2.6% to $4.01 bn driven by higher pricing, partly offset by lower shipment volume that declined 2.6% to 30.85 bn units. While cigarettes’ retail share gained 0.5 percentage point backed by higher gains in Marlboro and Discount brands, retail share for cigars declined 1.3 pp. Marlboro’s retail share went up 0.2 pp to 44%. Operating income grew 2.8% y-o-y to $1.97 bn, and operating margin climbed 40 basis points to 31.1%. Adjusted earnings of 67 cents per share were up 1.5% y-o-y, but missed consensus estimate of 68 cents. Altria expects adjusted earnings per share in 2016 in the range of $3.00-3.05. This range represents a growth rate of 7-9% from adjusted EPS of $2.80 in 2015. The company also said it’s working to cut $300 mn in annual expenses by the end of 2017. The plan will focus on reducing selling, general and administrative costs, and creating a leaner organizational structure. Altria continues to focus on the growth of the e-cigarette category and less harmful alternative tobacco products, which is in line with changing consumer preferences. The company announced that its subsidiary Nu Mark expanded the distribution of MarkTen XL and Green Smoke e-vapor products across several lead markets. Additionally, Nu Mark and Philip Morris International continue to work to boost research, product development and technology-sharing for e-vapor products as part of the extended agreement between the latter and Altria. The extended agreement also includes exclusive technology cross licenses, technical information sharing and cooperation on scientific assessment, regulatory engagement and approval related to these products. Shares of Altria are currently consolidating above the $59 resistance level. The stock, in my opinion, is well positioned to continue growth, with medium-term target price at $65. $MO, Altria Group, Inc. / 1440