Altria’s shares fell after reporting flat earnings due to declining cigarette sales and tough competition for nicotine pouches. Revenue dropped 2% to $5.8 billion in the fourth quarter. The company missed Wall Street expectations for earnings per share. Company shares fell more than 2.5% in morning trading.

Altria is pushing to diversify with e-cigarettes and nicotine pouches but faces market challenges. The FDA recently authorized Altria’s pouch brand, on! Plus, in various flavors. However, Altria’s market share for nicotine pouches declined to 13% in the latest quarter, losing ground to Zyn from Philip Morris International.

Altria plans to introduce its own pricing strategy to compete with Zyn’s 2-for-1 sale promotions. The company remains interested in other alternative tobacco products, including e-cigarettes. Altria faced a setback last year when its NJOY vaping devices were found to infringe on Juul’s patents, blocking imports and sales of NJOY Ace products.

Altria recorded adjusted revenue of $5.08 billion, beating Wall Street forecasts. The company expects full-year earnings per share in the range of $5.56 to $5.72. This story includes data from Zacks Investment Research.

Read more at Yahoo Finance: Altria earnings fall short amid lower cigarette sales and competition for nicotine products