Categories AlphaGraphs, Earnings, LATEST, Other Industries
Philip Morris surprises Wall St with Q2 earnings growth, hiked guidance
Tobacco giant Philip Morris (NYSE: PM) surprised Wall Street by reporting growth in earnings in the second quarter. Adjusted net income grew 3.5% to $1.46 per share, even as analysts were expecting a decline. The company also raised its 2019 full-year EPS guidance.
Q2 revenues edged down 0.3% to $7.7 billion, hurt by currency headwinds. However, this still came in above the analysts’ estimate of $7.4 billion. Without the impact of currency, net revenues improved 5.4% year-over-year.
Following the better-than-expected results, PM shares gained 1.8% during pre-market trading on Thursday. The stock has gained 21% so far this year.
Cigarette and heated tobacco unit shipment volume was down by 1.4% during the quarter. Individually, cigarette shipment volume declined 3.6%, while heated tobacco unit shipment volume was up 37%.
Outlook raised
The company said it currently expects full-year 2019 reported EPS of at least $4.94, compared to the earlier projection of $4.87. During the same period last year, the company had reported earnings of $5.08 per share.
On an adjusted basis, the Malboro-maker currently expects at least 9% year-over-year growth in full-year EPS.
CEO André Calantzopoulos said, “In the markets where they are sold, our heated tobacco brands held a sizable combined share of 5.0% year-to-date, driving a total international share of 2.1%, up by 0.6 points.”
READ: Major marijuana stocks experience downward pressure this week
The company has been aiming to ultimately replace cigarettes with smoke-free products. Marlboro, along with Bond Street, Chesterfield, L&M, Lark and Philip Morris, has remained the company’s major global cigarette brands and these contribute to the top-line growth. The volume growth could depend on the strength of the combustible business and smoke-free product portfolios.
The tobacco industry operates in a highly regulated environment. The well-known risks of smoking have led regulators to impose significant restrictions and high excise taxes on cigarettes. Apart from this, cannabis has remained an attractive long-term investment for big tobacco, alcohol, and pharmaceutical companies.
Most Popular
QCOM Earnings: Qualcomm Q2 2024 revenue and profit beat Street view
Semiconductor company Qualcomm, Inc. (NASDAQ: QCOM) reported an increase in earnings and revenues for the second quarter of 2024. The numbers came in above analysts' estimates. At $9.39 billion, March-quarter
Key takeaways from Amazon’s Q1 2024 earnings report
Amazon.com Inc. (NASDAQ: AMZN) had an upbeat start to fiscal 2024, delivering strong growth across the business in the first three months of the year. While the cloud segment continues
Key takeaways from Pfizer’s (PFE) Q1 2024 earnings report
Shares of Pfizer Inc. (NYSE: PFE) gained over 5% on Wednesday following the company’s announcement of its first quarter 2024 earnings results. Although the top and bottom line numbers decreased
Comments
Comments are closed.