Philip Morris International Inc. (PM), headquartered in Stamford, Connecticut, stands as a dominant player in the tobacco sector, focusing on innovative, science-driven smoke-free alternatives. With a market capitalization of $234.4 billion, the company is actively transforming its business model to move beyond traditional cigarettes.

The company will report its Q1 earnings on Wednesday, April 23, before the market opens. Analysts anticipate that Philip Morris will report a profit of $1.61 per share, representing a 7.3% increase from the $1.50 per share reported in the same quarter last year.

Active Investor: FREE newsletter going behind the headlines on the hottest stocks to uncover new trade ideas

 

Over the last four quarters, the company has consistently exceeded consensus estimates. In its most recent quarter, Philip Morris reported earnings per share (EPS) of $1.55, surpassing expectations by 2.7%. This growth stemmed from robust sales in its smoke-free product line, particularly driven by the popularity of IQOS and ZYN, as well as stable pricing across vital global markets.

Looking forward to fiscal 2025, analysts forecast an adjusted EPS of $7.14, up 8.7% from $6.57 in fiscal 2024. Projections for fiscal 2026 suggest an adjusted EPS growth of 10.5% year over year, reaching $7.89.

In the past 52 weeks, Philip Morris shares have delivered impressive returns, rising 69%. This significantly outperformed the S&P 500 Index’s ($SPX) loss of 2.7% and the Consumer Staples Select Sector SPDR Fund’s (XLP) modest gain of 4.3% during the same timeframe.

The strong performance of Philip Morris can be attributed to solid market demand, impressive financial results, and strategic growth in smoke-free products. Additional factors, such as its defensive stock nature and favorable analyst sentiment, have contributed to its outperforming the broader market.

On February 6, after releasing its Q4 earnings, Philip Morris shares surged 11%. The company reported net revenues of $9.7 billion for the previous quarter, up 7.3% year over year. Remarkably, revenue from smoke-free products grew by 9.2%, now making up 40% of the company’s total revenue—a clear indication of its significant shift away from traditional tobacco.

Market sentiment surrounding the PM Stock remains cautiously optimistic, reflected in an overall “Moderate Buy” rating from analysts. Out of the 12 analysts covering the Stock, eight recommend a “Strong Buy,” one suggests a “Moderate Buy,” two advocate for a “Hold,” and one issues a “Strong Sell” rating.

With a mean price target of $151.60, analysts suggest there is slight upside potential from current price levels.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

 

More news from Barchart

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.