Altria writes down Juul investment by $4.5 billion amid vaping crackdown

• Tobacco giant Altria said it wrote down its investment in e-cigarette maker Juul by $4.5 billion during the third quarter.
• The company said no one factor led to the charge, but it did cite the rising regulatory pressure on vaping and flavored e-cigarettes.
• Altria purchased a 35% stake in Juul last year for $12.8 billion, valuing the company at $38 billion.
• Watch Altria trade live on Markets Insider.

Altria, the owner of Marlboro, wrote down its investment in e-cigarette maker Juul by $4.5 billion during the third quarter.

While the company said there was no one factor that led to the write-down, it did cite the intensifying regulatory scrutiny around vaping.

"Altria considered impairment indicators in totality, including: increased likelihood of U.S. Food & Drug Administration (FDA) action to remove flavored e-vapor products from the market pending a market authorization decision, various e-vapor bans put in place by certain cities and states in the U.S. and in certain international markets, and other factors," Altria said Thursday in its third-quarter earnings release.

The charge wiped out Altria's profits for the third quarter on an unadjusted basis. The company generated a loss per share of $1.39, compared to a gain of $1.03 per share during the same period last year.

Adjusting for one-time charges such as the Juul write-down, Altria reported earnings per share of $1.19, narrowly beating Wall Street estimates of $1.15.

The company also posted revenues net of excise taxes of $5.41 billion, surpassing analyst forecasts of $5.34 billion. Shares rose about 1.6% in early morning trading on the earnings beat.

Juul's embattled year has weighed on Altria's stock price. The firm's shares have fallen about 7% year-to-date, compared to the S&P 500 index's gain of more than 21%.

Altria purchased a 35% stake in Juul last year for $12.8 billion, valuing the company at $38 billion.

The pressure on Juul has grown in recent months as federal officials continue to report more vaping-related deaths and illnesses.