Semi-precious

31 October 2019 By Robert Cyran, Amanda Gomez Follow @rob_cyran

The tobacco company thinks vaping affiliate Juul is worth one-third less than it paid. It’s counting on slower sales and temporarily lower profitability as regulators weigh limits on e-cigarettes, and localities ban them. Investors are baking in more pessimistic projections.

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Altria on Oct. 31 said it wrote down $4.5 billion of its investment in e-cigarette maker Juul Labs. The company has a 35% stake in Juul that it acquired for $12.8 billion last year.

On the same day, Altria reported $5.4 billion in net revenue, which excludes excise taxes and promotions, for the quarter ended Sept. 30, compared with estimates of $5.3 billion, according to Refinitiv.

Adjusted earnings were $1.19 per share, above estimates of $1.15.

Altria’s stock was down 0.2% to $45.85 a share at 10:37 a.m. in New York.

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