Shares of Philip Morris International Inc. (PM) rose 0.4% in premarket trading as the company exceeded second-quarter profit expectations. However, it provided a somewhat cautious outlook for the full year, citing an expected decline in industry volumes.
- Net earnings per share dropped to $1.01 from $1.43 in the same quarter last year.
- However, excluding nonrecurring items, the company’s EPS increased from $1.48 to $1.60, surpassing the FactSet consensus of $1.50.
- Revenue experienced impressive growth, reaching $8.97 billion, which exceeded the FactSet consensus of $8.67 billion.
- Despite a slight slip of 0.4% in cigarette sales, the company saw a significant increase of 26.6% in heated tobacco units (HTUs), reaching 31.42 billion units.
- Smoke-free product revenue notably rose by 34.1% to $3.2 billion.
Philip Morris International provided a somewhat downbeat outlook for 2023, citing an anticipated decline in total industry volume for cigarettes and HTUs (excluding China) by 0.5% to 1.5%. Consequently, the company expects adjusted EPS for the year to range between $6.13 and $6.22, slightly lower than the FactSet consensus of $6.24.
Year to date, Philip Morris International stock has declined by 2.4% through Wednesday, while the S&P 500 has rallied 18.9%.
In summary, while Philip Morris International reported strong second-quarter results, the company remains cautious about the outlook for the full year due to an expected decline in industry volumes.