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
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.