Philip Morris International, Inc. (NYSE:PM)
Shares of Philip Morris International are down 3.58% after the cigarette manufacturer lowered its yearly earnings per share guidance during the presentation of its second-quarter financial results early Thursday.
The New York-based company flew past Wall Street estimates after posting per-share earnings of $1.41 and sales of $7.73 billion.
Heated tobacco and cigarette unit shipment volume increased by 0.6% to 201.7 billion during the quarter.
PM Earnings & Outlook
The company posted earnings $2.20 billion, or $1.41 per share for the quarter, compared with $1.78 billion, or $1.14 per share in the period last year. Excluding one-time items, earnings came in at $1.41 per share.
Total sales totaled to $7.73 billion for the quarter, versus $6.92 billion in the previous year.
Analysts expected the company to report adjusted earnings per share of $1.23 on sales of $7.56 billion in revenue, according to Thompson Reuters.
For the full year, Philip Morris lowered its outlook, and now sees earnings per share in the range of $5.02 to $5.12 from the previous forecast of $5.25 to $5.40.
Analysts project yearly earnings per share of $5.14 on sales of $30.8 billion. Meanwhile, the board of directors has approved a quarterly dividend of $1.14 from the previous $1.07.
Philip Morris International CEO Comments
“Our second-quarter earnings highlight the fundamental strength of our business, with positive total volume growth, currency-neutral net revenue growth of more than 8%, driven by higher pricing from our combustible product portfolio, and close to double-digit growth in ex-currency operating income. We are seeing encouraging improvement in the markets we previously cited as challenging, with a sequential recovery of volume in the GCC and an improving pricing environment in Russia,” said André Calantzopoulos, Chief Executive Officer.
"Reflecting better execution, our heated tobacco portfolio across IQOS launch geographies is performing well, notably in key markets such as the EU. We are implementing the right marketing and product measures to reinvigorate growth in Japan, which is undoubtedly well below our initial expectation this year. These initiatives, which require the rightsizing this year of existing IQOS device and consumable inventories, will position PMI well for a strong overall performance in 2019,” added Calantzopoulos.
Philip Morris International, Inc. Company Profile
Philip Morris International Inc. is engaged in the manufacture and sale of cigarettes, other nicotine-containing products, and other tobacco products.
Its brand portfolio consists of Parliament, Marlboro, Phillip Morris, Bond Street, Next, Chesterfield, Virginia S., L&M, Merit, Lark, and Muratti.
It also owns several other cigarette brands, including Sampoerna, Dji Sam Soe, Jackpot and Fortune in the Philippines; Delicados in Mexico; Sampoerna U and Sampoerna A in Indonesia; and Canadian Classics and Belmont in Canada.
The company sells and markets its products in the Europe, the Middle East, Canada, Africa, Latin America, and Asia.
It has a strategic partnership with Parallax Development Corporation for the commercialization and development of a nicotine-delivery system.
Philip Morris International Inc was founded in 1847 by Philip Morris. Its headquarters are located in New York, NY. -Reuters