Why Philip Morris Is Taking Some Heat for Earnings
Philip Morris International reported mixed quarterly results with disappointing earnings guidance before the markets opened on Thursday.
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When Philip Morris International Inc. (NYSE: PM | PM Price Prediction) reported its most recent quarterly results before the markets opened on Thursday, the company said that it had $1.43 in earnings per share (EPS) and $7.64 billion in revenue. The consensus estimates had called for $1.36 in EPS and revenue of $7.67 billion. The third quarter of last year reportedly had EPS of $1.44 and $7.5 billion in revenue.
During the latest quarter, cigarette and heated tobacco unit shipment volume slipped 2.1% (down by 1.4% on a like-for-like basis), reflecting cigarette shipment volume down by 5.9% and heated tobacco unit shipment volume up by 84.8%.
Looking ahead to the 2019 full year, the company expects to see EPS of $5.14, or $5.38 excluding currency. Consensus estimates call for $5.21 in EPS and $29.95 billion in revenue for the year.
While Philip Morris expects its net revenue and adjusted operating income growth in the fourth quarter to be in line with its year-to-date results, the currency-neutral adjusted EPS growth is anticipated to be lower than the year-to-date performance.
CEO André Calantzopoulos commented:
The exciting global growth of our heated tobacco products drove our resilient total shipment performance, despite certain timing issues related to our combustible portfolio. The quality of our execution across the business drove growth against each of the key metrics of net revenues, operating income, margin, as well as earnings per share — both in the quarter and year-to-date — on a currency-neutral, adjusted like-for-like basis.
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Shares of Philip Morris traded down about 1% at $78.25 on Thursday, in a 52-week range of $64.67 to $92.74.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
