Shares of Philip Morris International Inc. (NYSE: PM) gained over 9% on Tuesday after the company delivered better-than-expected earnings results for the third quarter of 2024 and raised its guidance for the full year. The quarterly results benefited from continued momentum in the smoke-free business and resilience in the combustibles segment.
Revenue and earnings beat expectations
Philip Morris’ revenue and earnings for the third quarter grew on a year-over-year basis and beat expectations. Net revenues increased 8.4% to $9.9 billion, exceeding estimates of $9.7 billion. Organic revenues grew 11.6%, driven by shipment volume growth, positive smoke-free category mix and pricing. GAAP EPS increased 49% to $1.97, while adjusted EPS grew over 14% to $1.91, surpassing projections of $1.67.
Business performance
Philip Morris continued to see momentum in its smoke-free business, which accounted for 38% of total revenues in the third quarter. Net revenues for the smoke-free business grew 14% and gross profit rose nearly 16% in Q3. This growth was driven by strength in IQOS, continued gains in ZYN, and a growing contribution from VEEV.
Heated tobacco units (HTU) adjusted in-market sales (IMS) volume increased 14.8% in Q3. PM expects this momentum to continue in the fourth quarter of 2024. IQOS is seeing strong growth in markets like Europe and Japan and the company plans to expand into more markets including Italy, Greece and Switzerland.
In Q3, oral smoke-free products shipment volume grew 24.7%, driven by growth in ZYN nicotine pouches. In the US, ZYN shipments grew 41.4% YoY to 149.1 million.
Net revenues in combustibles grew 5.2% in Q3, driven by pricing and resilient volumes. Cigarette shipments grew 1.3%. PM’s cigarette category share grew by 0.1 points in the third quarter.
Guidance hike
Philip Morris raised its organic revenue growth guidance for the full year of 2024 to around 9.5% on the back of stronger volumes, higher pricing, and continued smoke-free mix. The company also raised its outlook for adjusted EPS to a range of $6.45-6.51 from the previous range of $6.33-6.45. This EPS forecast represents an increase of 14-15% from last year.
Listen to the conference calls as they happen. Don't miss a beat! With AlphaStreet Intelligence, you can listen to live calls and interviews as they happen, so you never have to worry about missing out on important information.
Most Popular
GM Earnings: General Motors reports higher sales and profit for Q3 2024
Automaker General Motors Co. (NYSE: GM) reported a double-digit increase in sales and adjusted earnings for the third quarter of 2024. Revenue increased 10.5% year-over-year to $48.8 billion in the
Key metrics from Kimberly-Clark’s (KMB) Q3 2024 earnings results
Kimberly-Clark Corporation (NYSE: KMB) reported third quarter 2024 earnings results today. Net sales of $5 billion were down 4% year-over-year. Organic sales grew 1%. Net income attributable to Kimberly-Clark Corporation
Infographic: Key highlights from Philip Morris’ (PM) Q3 2024 earnings results
Philip Morris International Inc. (NYSE: PM) reported third quarter 2024 earnings results today. Net revenues grew 8.4% year-over-year to $9.9 billion. Organic revenue growth was 11.6%. Net earnings attributable to
