Seeking Alpha

Philip Morris drops 2014 earnings forecast

  • Philip Morris (PM) reports a drop to its 2014 forecast, cutting earnings to $4.87-$4.97 per share, from the $5.09-$5.19 per share it previously expected. The company still estimates adjusted profit in 2014 to rise 6-8%.
  • "We continue to face significant currency headwinds, an improving but weak macro-economic environment in the European Union and known challenges in Asia," says CEO Andre Calantzopoulos.
  • PM -0.1% AH
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Comments (8)
  • Dan Naumov
    , contributor
    Comments (358) | Send Message
     
    PM has been blaming currency effects for what, 2 years now? Has the dollar REALLY been appreciating against other currencies for 2 years straight despite all the QE by the FED? This starts looking more and more like excuses. I bet next it will be the "bad weather".
    26 Jun 2014, 08:31 AM Reply Like
  • Cash King
    , contributor
    Comments (1071) | Send Message
     
    I can't be positive as I haven't looked in depth but I can say for the last year at least the dollar has been appreciating against the Canadian dollar.

     

    I own RCI(Canadian company) which has been growing their dividend but in US dollar terms the dividend has actually gone down over the last year and a half or so.

     

    So, for what it is worth I believe PM. I'll buy if you sell.
    26 Jun 2014, 08:59 AM Reply Like
  • Matthew Mazurczak
    , contributor
    Comments (1375) | Send Message
     
    @Dan

     

    Pull up the USD/Yen, USD/RUB, USD/AUD, USD/PHP, USD/THB just to name a few and see if these are excuses.

     

    I assume you understand the relationship between a Strong USD and the effects of such on an EM currency?

     

    No offense but you are either doing a very superficial evaluation of the company or are very under educated in regards to macro economics and currencies.
    26 Jun 2014, 12:34 PM Reply Like
  • Dan Naumov
    , contributor
    Comments (358) | Send Message
     
    I don't misunderstand the relationship between a Strong USD and the effects of such on an EM currency at all. I am questioning whether the USD has in fact strenghened so much over the past 2 years against various EM currencies as to be a viable explanation for PM weakness.

     

    Maybe it has, maybe it hasn't. I haven't looked, that's why I asked "Has the dollar REALLY been appreciating against other currencies for 2 years straight despite all the QE by the FED?"
    26 Jun 2014, 12:53 PM Reply Like
  • kindsvjh
    , contributor
    Comments (64) | Send Message
     
    Or having to write off its e-cig business.
    26 Jun 2014, 08:54 AM Reply Like
  • Profitcripper
    , contributor
    Comments (101) | Send Message
     
    Buying opportunity at these level for more dividends, beautiful........currency hiccups is real.
    26 Jun 2014, 09:32 AM Reply Like
  • User 13826632
    , contributor
    Comment (1) | Send Message
     
    I think for the last year PM has had their head in the sand when it comes to telling investors the truth. Last year it was wait until the last half of 2013 and it will be back loaded?? Back loaded - We got back loaded . If the people at the top can not figure out the truth about their business and outlook - we need a change. For sure during the past 18 months we have not been getting a very clear outlook as it keeps changing. This management team is not getting it done.
    27 Jun 2014, 11:44 AM Reply Like
  • MAKE10
    , contributor
    Comments (45) | Send Message
     
    The new ceo put PM in order , give him time to see result
    28 Jun 2014, 09:10 AM Reply Like
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