|Bid||3,111.00 x 0|
|Ask||3,113.00 x 0|
|Day's range||3,051.00 - 3,114.00|
|52-week range||116.50 - 3,507.00|
|Beta (5Y monthly)||0.66|
|PE ratio (TTM)||12.51|
|Earnings date||31 Jul 2020|
|Forward dividend & yield||2.10 (6.72%)|
|Ex-dividend date||09 Jul 2020|
|1y target est||3,825.26|
Image source: The Motley Fool. British American Tobacco PLC (NYSE: BTI)Q1 2020 Earnings CallJun 9, 2020, 4:00 p.m. ETContents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Mike Nightingale -- Investor RelationsTo begin, I need to draw your attention to [Technical Issue]Thank you, and good morning, everyone.
Shares in the world's second largest cigarette maker fell almost 4% after it lowered revenue and profit growth estimates for this year by a couple of percentage points each. Big developing markets including South Africa, where tobacco sales have been banned since March, have extended restrictions, while curbs have also continued on bars in countries including Vietnam. Marlboro maker Altria pulled its forecast for the current financial year in April, but along with Gauloises maker Imperial Brands has so far given little guidance on the impact of the lockdowns on demand for the rest of the year.
HSBC <HSBA.L> fell 3.6% and was the biggest weight on the FTSE 100 index <.FTSE> after Aviva Investors, a top-20 investor in both the bank and peer Standard Chartered <STAN.L>, raised concerns over their support for the law. The blue-chip FTSE 100 declined 2.1%, with cigarette maker British American Tobacco Plc <BATS.L> falling 3.1% after it flagged a demand hit due to prolonged lockdowns in South Africa and Mexico and weak sales in Bangladesh and Vietnam.
Tobacco vaccine production is a surprisingly economical endeavor, saving time and costs. Kentucky Bioprocessing, the biotechnology subsidiary of British American Tobacco, is leading the way.
British American Tobacco (NYSE: BTI) is a London-based company, but its acquisition of Reynolds American in 2017 gave BAT the No. 2 position in U.S. cigarette market share. At this point, BAT's declines have made it look especially attractive to value investors, but prospective buyers want to know whether they're getting themselves into a value trap. Below, we'll look more closely at British American Tobacco and whether its stock is a good buy.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Although there are many companies pursuing a vaccine for COVID-19, the tobacco industry may be one of the more surprising combatants in this battle. Both British American Tobacco (NYSE: BTI) and Philip Morris International (NYSE: PM) are working on a vaccine for the disease. Unlike automakers or cosmetics companies converting production facilities to make personal protective equipment, it's not the actual manufacturing units of the tobacco companies working to fight COVID-19, but rather their biotech divisions.
The U.S. International Trade Commission has announced a probe into Altria and Philip Morris for alleged patent violations over iQOS heat-not-burn technology.
The maker of Lucky Strike cigarette said once it gets approval from the U.S. Food and Drug administration (FDA) for the vaccine, it would progress to Phase 1 trials or testing on humans. The company raised eyebrows in April when it said it was developing a COVID-19 vaccine from tobacco leaves and could produce 1 million to 3 million doses per week if it got the support of government agencies and the right manufacturers. Drugmakers across the globe have been racing to develop a vaccine for COVID-19, caused by the new coronavirus, with some of the vaccines already in human trials.
The world's second-biggest tobacco group on Tuesday said it was cooperating with the U.S. Department of Justice (DoJ) and Office of Foreign Assets Control (OFAC) without elaborating and declined to say whether the case was a criminal investigation. Neither the DoJ nor OFAC responded immediately to Reuters' requests for comment.
The Lucky Strike cigarette maker said it had filed two patent infringement claims in the United States against Philip Morris, one through the International Trade Commission (ITC) and one in the Virginia federal court, seeking remedies for damages caused and an injunction on importing the product. The lawsuits in Germany and the United States focus on the heating blade technology used in IQOS, which BAT said was an earlier version of the technology currently being used in its glo tobacco heating devices.
The South African arm of British American Tobacco <BATS.L> urged the government on Saturday to reconsider its ban on cigarette sales during the nationwide coronavirus lockdown, saying it would have unintended consequences. The government has justified the ban on studies showing that smoking can make people more susceptible to serious complications from a coronavirus infection. British American Tobacco South Africa (BATSA) said it supported the decisive measures taken by the government but warned the ban on cigarette sales could jeopardise the fight to contain the virus.
Kentucky BioProcessing (KBP), the unit developing the vaccine, could produce between 1 million and 3 million doses per week starting in June, the company said, with support from government agencies and the right manufacturers. British American Tobacco said KBP, a division of BAT's U.S. unit Reynolds American Inc, would develop the vaccine on a not-for-profit basis.
Imperial Brands, the maker of Gauloises Blondes cigarettes, said it secured a new 3.5 billion euros (3.13 billion pounds) credit line with an initial three-year term that could be extended bi-annually. British American Tobacco separately said on Tuesday it priced an offering of $2.4 billion notes and intends to use the proceeds for general business purposes, including paying off upcoming maturities. The tobacco group, whose brands include Lucky Strike and Dunhill cigarettes, earlier in March said it too had not seen any outbreak-related hit on its business and maintained its full-year forecasts.
After wild swings earlier in the day, the blue-chip FTSE 100 <.FTSE> rose 1.4%, with big dollar earners such as Diageo <DGE.L>, Royal Dutch Shell <RDSa.L> and AstraZeneca <AZN.L> providing the biggest boost, even as the pound recovered from a 35-year low. The central bank cut interest rates to 0.1%, its second emergency rate cut in just over a week, and promised 200 billion pounds of additional bond purchases, and at a much faster pace than normal. The moves follow similar drastic measures by other central banks and governments, including a 330 billion-pound stimulus package from the UK government earlier this week, to inject liquidity into markets and stem an economic slowdown, which many fear may have already pushed the global economy into a short slump.
Shares of the world's No. 2 tobacco company have risen nearly 14% in the past 12 months, partly due to the group's low exposure to vaping in the United States where a backlash against e-cigarettes following several vaping-related deaths led to tighter regulation and a ban on selling pod-based e-cigarette flavours from this month. "It's not a ban forever," Chief Marketing Officer Kingsley Wheaton told Reuters, adding that BAT was confident its flavoured products will be approved by the U.S. Food and Drug Administration (FDA) and go back on the market. BAT said it was going to file applications for a range of flavours.
The U.S. Food and Drug Administration on Thursday said e-cigarette makers will be banned from selling pod-based e-cigarette flavours, including fruit, dessert and mint, in the United States from February. The ban was less stringent than one U.S. President Donald Trump had proposed in September, when he threatened to remove all flavours, including menthol, from all types of e-cigarettes to curb a teenage vaping epidemic. BAT shares rose as much as 2.5% and were the biggest gainers in the FTSE 100 index where many shares were hit by heightened tensions in the Middle East.
Times get ever tougher for vapers... Or at least the firms that make the e-cigarettes. On Wednesday (December 18) the UK said it was cracking down on adverts for the products on Instagram. It acted after complaints that the marketing could appeal to children. Posts that broke the rules included ones featuring British singer Lily Allen. Now British American Tobacco and three other firms must cease using Instagram to promote e-cigarettes in the UK. They also have to stop using influencers, and remove offending posts. Meanwhile, Reuters analysis shows vaping firms could face an even bigger threat in the U.S. The Food and Drug Administration says makers have until May to prove that their products pass a twin test. Do they help people quit smoking? And does that benefit outweigh the health damage to new e-cigarette users who never smoked in the first place? But Reuters analysis of the latest data shows that e-cigarettes have done little to reduce U.S. smoking. And growth in vaping since 2015 has come entirely from users aged under 25, including teens. Any firms that fail the FDA tests could face a ban on sales of their products.
Companies including British American Tobacco (BAT) will be barred from promoting e-cigarettes on Instagram and other social media sites as a result of a ruling by the UK's advertising watchdog on Wednesday. The Advertising Standards Authority (ASA) investigated Instagram posts from BAT e-cigarette brand Vype, as well as rivals Ama Vape, Attitude Vapes, and Global Vaping Group.
The Advertising Standards Authority (ASA) also directed the company to remove all ads related to Vype on Instagram. The decision stems from a probe into seven Instagram posts by Vype after some health groups raised complaints in March that they were likely to appeal to those below 18 years of age. The complaints from Action on Smoking and Health, Campaign for Tobacco-Free Kids and Stopping Tobacco Organizations and Products also alleged the company had used models who appeared to be under 25, which is prohibited in the UK.
The brokerage raised its rating to "buy" from "underperform" - its first-ever double upgrade for BAT - citing reduced near-term U.S. regulatory risk and a more favourable competitive vaping environment for the Newport and Dunhill cigarette maker. "The company is taking the right actions, shifting away from the status quo of a traditional tobacco company, recognizing the challenges faced in NGPs (new generation products) and implementing the right strategic decisions to compete more eﬀectively in the new fast-evolving world of tobacco," analyst Mirco Badocco wrote in the note. BAT's shares rose as much as 5% to 3,198 pence in morning trading after BofA also raised its share price objective to 3,400 pence from 2,500 pence.
Investing.com - British American Tobacco (LON:BATS) jumped midday Monday after a strong vote of confidence from Bank of America (NYSE:BAC).
U.S. health officials have reported more than 2,000 cases of vaping-related lung illness and 47 deaths linked to its use in the country, leading to tighter regulatory scrutiny and individual state bans. This has led to a drop in demand for the devices, pushing BAT to forecast revenue growth in its new categories business - e-cigarettes, tobacco heating and oral products - to be at the low end of its 30-50% target. It had previously anticipated revenue growth in the middle of that range.