Companies and Brands

Philip Morris International 2013 Guidance Differentiates It from Altria

Philip Morris International Inc. (NYSE: PM) is out with its fourth-quarter earnings, and the international tobacco giant is still growing. Earnings per share increased by almost 16% to $1.25, and its adjusted diluted earnings per share grew by almost 13% to $1.24. The Thomson Reuters consensus was $1.22 per share.

Its net revenues (outside of excise taxes) rose by 2.8% to $7.9 billion, versus the Thomson Reuters consensus of $8.03 billion. That sales figure was higher if you back out items.

Cigarette shipment volume was up by 2.9%, excluding acquisitions. Philip Morris International said that its reported operating companies income was up by 9.5% to $3.3 billion, but this would have been up by 13% outside of currency and acquisitions. The company also repurchased 22.4 million shares of its common stock for $2.0 billion in the quarter.

The international tobacco giant, formerly part of Altria Group Inc. (NYSE: MO), is now issuing guidance for 2013 in a range of $5.68 to $5.78 per share at prevailing exchange rates, versus $5.17 (or $5.22 ex-currency) per share in 2012, which represents 10% to 12% adjusted earnings growth over 2012. This includes a one-year gross productivity and cost savings target for 2013 of approximately $300 million, but it also includes a share repurchase target amount for 2013 of $6.0 billion. The current Thomson Reuters estimate is $5.79 in earnings per share.

This report sounds very mixed on the surface, and that seems to be as a result of the extraordinary items. Shares are currently trading up 0.5% at $88.12, against a 52-week range of $77.84 to $94.13. The consensus analyst target from Thomson Reuters before this report was almost $97 for a year out.

This values the international tobacco giant at 15.6 times expected 2013 earnings, and its dividend yield is 3.9%. As far as the former parent Altria, that is valued at 14.4 times the expected 2013 earnings, and its dividend yield is about 5.15%.

The Average American Is Losing Their Savings Every Day (Sponsor)

If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4% today, and inflation is much higher. Checking accounts are even worse.

Every day you don’t move to a high-yield savings account that beats inflation, you lose more and more value.

But there is good news. To win qualified customers, some accounts are paying 9-10x this national average. That’s an incredible way to keep your money safe, and get paid at the same time. Our top pick for high yield savings accounts includes other one time cash bonuses, and is FDIC insured.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes and your money could be working for you.

 

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.