Philip Morris International Inc. (NYSE: PM) reported its first-quarter financial results before the markets opened on Thursday. The firm said that it had $1.00 in earnings per share (EPS) on $6.9 billion in revenue, while consensus estimates had called for $0.90 in EPS on revenue of $7.04 billion. In the same period of last year, the cigarette maker said it had EPS of $0.98 and $6.06 billion in revenue.
During the quarter, cigarette and heated tobacco unit shipment volumes were down 2.3% to 173.8 billion, or by 1.1% excluding the net impact of total estimated inventory movements. This was the result of cigarette shipment volumes down by 9.3 billion units or 5.3% of 164.3 billion units.
Separately, heated tobacco unit shipment volume was 9.6 billion units, up by 5.1 billion units from 2017.
Looking ahead, the company expects to see EPS growth in the range of 35% to 39% for the 2018 full year. The consensus estimates are $5.27 in EPS on $31.97 billion in revenue for the year.
André Calantzopoulos, CEO, commented:
Our increased full-year EPS guidance reflects the benefit of a lower effective tax rate and incorporates, at this early stage in the year, some caution regarding: on-going volume challenges in the GCC; the pricing environment in Russia; and less-rapid-than-initially-projected growth in sales of devices to consumers in Japan in the first quarter, as we are now reaching more conservative adult smoker segments that may require, at least at first, slightly more time for adoption. Even if this temporary dynamic in Japan persists, we remain on track to double our worldwide in-market sales of heated tobacco units compared to 2017
Shares of Philip Morris closed Wednesday at $101.44, with a consensus analyst price target of $120.06 and a 52-week trading range of $95.51 to $123.55. Following the announcement, the stock was down over 4% at $97.05 in early trading indications Thursday.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
