Philip Morris Stock Gains as Profit and Revenue Beat Forecasts

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Philip Morris’s research campus in Switzerland.

Fabrice Coffrini/AFP via Getty Images

Philip Morris International’s stock was rising as its quarterly earnings came in higher than expected and the maker of Marlboro cigarettes increased its expected growth rate for profit. Its CFO says the company is actively working to mitigate a tricky backdrop for international players, a strategy that the results show is working.

The stock (ticker: PMI) jumped 5.3% to $ 94.59 in Thursday morning trading.

The company reported adjusted earnings per share of $1.48 for the second quarter, while the consensus call among analysts tracked by

FactSet

was for $1.25. Net revenue of $7.83 billion also was far above the $6.71 billion Wall Street expected.

But investors care more about the future than about the past quarters. Excluding the currency headwinds, Philip Morris said its adjusted diluted earnings will be between $6.09 and $6.20 a share this year, up from its previous forecast of $5.98 to $6.09 a share. The new guidance represents an increase of 10% to 12% from 2021’s full-year earnings.

Including the impact of foreign exchange, full-year earnings are expected to be in the range of $5.23 to $5.34 a share, which is lower than management’s previous prediction. That is because the company now expects a negative impact from foreign exchange of 86 cents per share, up from its previous forecast of 63 cents.

A stronger U.S. dollar has been plaguing U.S. multinational companies, like Philip Morris, that have to exchange overseas revenue back into dollars. PM operates in the European Union, Japan, South and Southeast Asia, and…

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