In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from PM and the news from its closest competitors.
Recent EPS Actuals vs. Estimates
The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $1.25 EPS, beating analyst estimates of $1.19.
The consensus EPS estimate is $1.34 based on 12 analysts' estimates, same as a year ago. Revenue estimates are $8.04B, down from $8.27B a year ago. The median target price by analysts for the stock is $91.00.
Average recommendation: Overweight
Analyst Upgrades and Downgrades
- On February 10, 2012, Stifel Nicolaus reiterated Buy rating for the company.
- On February 10, 2012, Barclays Capital reiterated Overweight rating for the company.
- On June 13, 2012, Philip Morris International Inc. announced a new three-year share repurchase program of $18 billion. It is anticipated that the new program will be initiated August 1, 2012, following completion of the existing three-year program of $12 billion which began in May 2010 and which will conclude ahead of schedule.
- On May 7, 2012, Philip Morris International Inc. announced that Hermann Waldemer, Chief Financial Officer, has elected to take early retirement effective July 31, 2012.
- On April 19, 2012, Philip Morris International Inc. revised, for prevailing exchange rates only, fiscal 2012 reported diluted EPS forecast to be in a range of $5.20 to $5.30. Excluding a forecasted total unfavorable currency impact of approximately $0.15 for fiscal 2012, reported diluted earnings per share are projected to increase by approximately 10% to 12% versus adjusted diluted earnings per share of $4.88 in 2011, unchanged from the earnings per share forecast provided on February 23, 2012.
- On February 9, 2012, Philip Morris International Inc. announced that it expects to report full year 2012 diluted earnings per share to be in a range of USD 5.25 to USD 5.35, at prevailing exchange rates, versus USD 4.85 in full year 2011.
British American Tobacco (BTI), Lorillard (LO), Altria Group (MO), and Reynolds American (RAI) are considered major competitors for Philip Morris and the table below provides the key metrics for these companies and the industry.
The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.
Competitors' Latest Development
- On April 25, 2012, Lorillard Inc. announced that it has acquired all of the assets of blu ecigs, a U.S. electronic cigarette (e-cigarette) company for $135 million in cash. blu ecigs is the e-cigarette brand. blu ecigs will be a separate operating company of Lorillard and it is Lorillard's intention to retain blu ecigs' current management team and headquarters in Charlotte, NC.
- On April 24, 2012, Reynolds American, Inc. reaffirmed its fiscal 2012 guidance for adjusted earnings per share (EPS) to be in the range of $2.91 to $3.01, excluding the restructuring charge.
- On March 1, 2012, Altria Group Inc announced that its Board of Directors declared a regular quarterly dividend of $0.41 per common share, payable on April 10, 2012, to shareholders of record as of March 15, 2012.
- On February 22, 2012, Altria Group Inc reaffirmed fiscal 2012 guidance for reported diluted earnings per share in the range of $2.14 to $2.20. The forecast includes estimated charges of $0.03 per share related to asset impairment, exit and implementation costs primarily related to the cost reduction program announced in October 2011, and estimated charges related to SABMiller special items.
- On February 9, 2012, Lorillard Inc. announced that its Board of Directors approved a 19% increase in the quarterly dividend on its common stock from $1.30 per share to $1.55 per share.
- On February 8, 2012, Reynolds American, Inc. announced that it expects adjusted EPS growth in mid- to high-single digits for fiscal 2012.
- On January 27, 2012, Altria Group Inc announced that Chairman and Chief Executive Officer (CEO), Michael E. Szymanczyk, 63, has decided to retire; Altria's Board of Directors (Board) elects Martin J. Barrington, 58, to serve as Altria's Chairman and Chief Executive Officer , and David R. Beran, 57, to serve as Altria's President and Chief Operating Officer (COO), effective May 17, 2012; Mr. Barrington joins Altria's Board effective immediately.
- On January 27, 2012, Altria Group Inc announced that for fiscal 2012, it expects diluted earnings per share to be in the range of $2.14-$2.20. The forecast includes estimated charges of $0.03 per share related to asset impairment, exit, integration and implementation costs primarily related to the cost reduction program announced in October 2011, and estimated charges related to SABMiller special items and expects adjusted diluted EPS which excludes special items will be in the range of $2.17-$2.23. According to I/B/E/S estimates, analysts were expecting the Company to report EPS of $2.19 for fiscal 2012.
The stock has a market capitalization of $153.86B and is currently trading at $90.21 with a 52 week range of $60.45 - $91.39. The stock's year-to-date performance has been 17.00%. It is currently trading above 20, 50 and 200 SMA.
Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.