Philip Morris Quarterly Revenue Rises While Profit Falls

what happened

Philip Morris International reported higher revenue for the latest quarter, while profit declined as inflationary pressures and higher investment weighed on results. According to Dow Jones Newswires, earnings per share came in at $2.12, down from $2.23 a year earlier. Excluding one-time items, the figure reached $2.36, above the $2.30 that analysts polled by FactSet had expected.

Net revenue rose 5.5% to $11.4 billion, ahead of the $11.32 billion Wall Street models had projected. Overall shipments edged up 0.6%, with smoke-free products up 2.7%. In the U.S., Zyn shipments climbed 4.2% to 3.2 billion pouches. Combustibles sales increased 6.4%.

For the full year, the company now expects earnings of $7.11 to $7.26 per share, or $8.29 to $8.44 on an adjusted basis. Its previous guidance was $7.28 to $7.42 and $8.35 to $8.50. Shares fell 2.5% to $195 in premarket trading.

why it matters

Two signals matter for the market: revenue growth even though smoke-free products account for more than 40% of sales, and a lower annual earnings outlook. Investors will watch how the company absorbs the extra spending on Zyn support in the current quarter.

market impact

PM shares: weaker profit and a lower full-year outlook add pressure on the stock and tobacco sector sentiment

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