In the final quarter of fiscal 2019, Philip Morris International (NYSE: PM) posted results that were slightly above the Wall Street expectations, nudging the stock into the green territory during pre-market trading hours.
Net revenues improved a modest 3% to $7.71 billion, despite a 5% decline in total shipment volume, helped by the solid pricing for its combustible tobacco portfolio. Analysts were targeting revenues of $7.66 billion.
On an adjusted basis, EPS fell 2.4% to $1.22, which was better than the street expectation by a cent.
The management gave a cautious outlook given the challenging market environment. “Although we anticipate a few temporary headwinds, notably in Indonesia, we enter 2020 with favorable momentum, and expect to deliver like-for-like currency-neutral net revenue and adjusted diluted EPS growth this year consistent with our 2019 to 2021 compound annual growth targets of at least 5% and 8%, as well as further margin expansion,” CEO André Calantzopoulos said.
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For FY20, the Malboro-maker expects adjusted EPS of $5.50.
The company expects a further decline of approximately 2.5% to 3.5% in cigarette and heated tobacco unit shipment volume, triggered by a weakness in international sales.
The stock has gained over 11% in the trailing 12-month period.