Philip Morris International Inc (NYSE:PM) shares rose after the company reported stronger-than-expected quarterly results, driven by growth in its smoke-free business and improved margins.
The firm flagged limited disruption from Middle East tensions and trimmed its full-year outlook, citing higher input and transport costs.
Quarterly Details
- First-quarter adjusted earnings per share of $1.96, beating the analyst consensus estimate of $1.83.
- Quarterly sales of $10.146 billion (+9.1% year over year) outpaced the Street view of $9.907 billion.
- The smoke-free business accounted for 43% of total net revenues (up by 1.3pp); PMI smoke-free products (SFP) are now available in 108 markets.
- Gross profit increased by 10.1% (3.8% organically), expanding gross margin through strong pricing, operating leverage and SFP mix benefits. Operating income increased by 9.8% (0.9% organically).
Middle East
The Stamford, Connecticut-based company said the Middle East conflict had a limited impact in the quarter under review, affecting shipments in travel retail and select regional markets.
It noted that higher energy prices and supply disruptions have not yet significantly altered consumer behavior.
The firm added that while uncertainty remains, its outlook does not assume prolonged disruption but factors in higher input and transport costs.
Outlook
Philip Morris projects second-quarter adjusted EPS of $2.02-$2.07, versus the $2.12 analyst estimate.
The firm lowered 2026 adjusted EPS guidance from $8.38-$8.53 to $8.36-$8.51, versus the $8.40 analyst estimate.
Philip Morris lowered 2026 GAAP EPS guidance from $7.87-$8.02 to $7.56-$7.71 vs $7.97 analyst estimate.
PM Price Action: Philip Morris shares are trading higher by 6.60% to $163.41 at last check Wednesday.
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