British American Tobacco (LON:BATS) Announces Earnings Results

British American Tobacco (LON:BATS) announced its earnings results on Thursday. The company reported GBX 176.76 EPS for the quarter, Digital Look Earnings reports. British American Tobacco had a negative net margin of 52.84% and a negative return on equity of 25.94%.

British American Tobacco Stock Down 1.0%

Shares of LON BATS opened at GBX 4,360.20 on Friday. British American Tobacco has a 12-month low of GBX 2,916 and a 12-month high of GBX 4,806. The stock has a fifty day moving average price of GBX 4,287.41 and a 200 day moving average price of GBX 4,158.04. The company has a current ratio of 0.88, a quick ratio of 0.47 and a debt-to-equity ratio of 74.63. The company has a market cap of £94.60 billion, a P/E ratio of 31.30, a P/E/G ratio of 3.12 and a beta of 0.27.

Key British American Tobacco News

Here are the key news stories impacting British American Tobacco this week:

• Positive Sentiment: Board extends and expands buyback program with a new Santander mandate to cancel repurchased shares, supporting EPS and capital return expectations. BAT Extends Share Buyback With New Santander Mandate to Cancel Shares
• Positive Sentiment: Preliminary FY 2025 results show profits surged and results came ahead of forecasts; company reiterated guidance and unveiled a fresh buyback — supportive for shareholder returns and valuation. British American Tobacco annual profit surges, unveils new buyback
• Positive Sentiment: BAT says a proposed US import block on certain vape products could cut illegal vape sales by about a third — a potential tailwind if enforcement lowers illicit competition and recovers volume/pricing. US import block on vapes could cut illegal sales by a third, BAT says
• Neutral Sentiment: Management is executing a transformation (streamlining, product mix shift to smokeless and reduced-risk products) that could drive medium-term growth but carries execution risk and transition costs. British American Tobacco’s transformation is under way
• Neutral Sentiment: Company plans to simplify operations and invest in AI-driven productivity; management flags possible job cuts — a potential margin positive over time but with short-term costs and reputational/operational considerations. British American Tobacco to cut jobs as it turns to AI in drive to ‘simplify’ operations
• Negative Sentiment: Ongoing illicit-tobacco problems: BAT has long warned South Africa about illegal trade that has undermined local production economics; enforcement gaps and potential plant closures create downside risk to volumes and margins in key markets. BAT Warned South Africa for Years Over Illicit Tobacco, CEO Says
• Negative Sentiment: Regulatory/enforcement headlines in other markets and discussions with authorities (e.g., Pakistan) underline persistent illicit-trade exposure that can pressure volumes and pricing. Illicit cigarette trade: Aurangzeb, BAT-PTC team discuss enforcement actions
• Negative Sentiment: Despite U.S. growth, management struck a cautious tone on near-term guidance; investors may mark down near-term multiple until outlook clarity improves. British American Tobacco Turns Cautious on Guidance Despite U.S. Growth
• Negative Sentiment: Quarterly release showed reported EPS but highlighted a negative net margin and negative ROE metric in filings — a reminder of profit mix and non-operational items that can cloud headline earnings. Marketbeat: BATS earnings summary

Wall Street Analyst Weigh In

Several analysts have commented on BATS shares. Citigroup upped their price objective on British American Tobacco from GBX 4,450 to GBX 4,850 and gave the company a “buy” rating in a research note on Friday, November 28th. Jefferies Financial Group reissued a “buy” rating and issued a GBX 5,200 target price on shares of British American Tobacco in a report on Tuesday, January 20th. Deutsche Bank Aktiengesellschaft increased their price target on British American Tobacco from GBX 4,400 to GBX 4,900 and gave the stock a “buy” rating in a report on Friday, November 28th. Finally, JPMorgan Chase & Co. boosted their price target on shares of British American Tobacco from GBX 3,300 to GBX 4,150 and gave the stock a “neutral” rating in a research note on Wednesday, November 26th. Three investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, British American Tobacco presently has an average rating of “Hold” and an average price target of GBX 4,500.

About British American Tobacco

BAT was founded in 1902 and was first listed on the London Stock Exchange in 1912. A constituent of the FTSE 100 since its creation in 1984, we have evolved, becoming the only truly global company in our sector.

BAT is transforming and is well positioned with a global footprint and multi-category portfolio. Our corporate purpose is to build A Better Tomorrow™, reducing the health impact of our business, by offering adult consumers a greater choice of enjoyable and less risky*† products compared to cigarettes.