Philip Morris International Inc. (NYSE: PM) is showing that smoking is still cool, at least as far as earnings are concerned. The international tobacco giant reported adjusted earnings of $1.00 EPS for 7% earnings growth, and revenues were $6.61 billion. Thomson Reuters had estimates of $1.01 EPS and $6.92 billion. This comes on the heels of Altria Group Inc. (NYSE: MO) earnings. Today’s news seems mixed, but the guidance and the buyback data may carry the show.
The company noted an unfavorable currency adjustment of $138 million in revenues due predominantly to the Euro; and excluding the currency net revenues increased by 2.5%. There were also a few drags on its operations. Among those were various timing issues affecting several markets, Japan in particular. Also noted was a significant excise tax increase implemented in Greece and Turkey.
The company’s increased market share is allowing it to raise and narrow guidance ahead. For 2010, the company sees $3.90 to $3.95 EPS versus $3.24 in 2009 and versus Thomson Reuters estimates of $3.77 EPS.
‘International Tobacco’ repurchased 20.7 million shares of its common stock for $1.1 billion. The company had already juiced its dividend up, but the company is adding to share buybacks via an acceleration of buybacks of an additional $1.0 billion in 2010 under an existing buyback plan.
Revenues rose by 0.4% excluding excise taxes, but that was 2.5% growth excluding currency. Free cash flow rose by 33.6% to $2.3 billion, but this figure was listed as being up 47.4% excluding currency.
It is still too early to see live price indications but shares closed Wednesday at $57.48 and the 52-week trading range is $42.94 to $58.78.
Altria Group Inc. (NYSE: MO) saw its shares rise yesterday to $24.92 from $24.75 after its earnings after beating earnings with $0.54 EPS versus $0.52 EPS expected, and the 52-week range there is $17.80 to $25.00. The boost to Altria was on smokeless tobacco and on Marlboro pricing.
JON C. OGG
The Average American Has No Idea How Much Money You Can Make Today (Sponsor)
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.