Philip Morris Set to Release Q4 Earnings Amid Growth in Smoke-Free Products
Philip Morris International Inc. (PM), based in Stamford, Connecticut, is a major player in the global tobacco market, known for its commitment to creating science-based alternatives to traditional smoking. With a market cap of $189.1 billion, the company is reshaping the industry with its smoke-free offerings, supporting a vision for a future without cigarettes. Investors are keenly awaiting the company’s Q4 earnings report, scheduled to be released before the market opens on Thursday, February 6.
Analysts Predict Strong Quarterly Earnings
Prior to the earnings announcement, analysts anticipate that Philip Morris will report a profit of $1.51 per share, reflecting an 11% increase from last year’s $1.36 per share in the same quarter. In the last four quarters, the company has outperformed consensus estimates in three instances, missing the mark only once.
Impressive Fiscal Performance in Q3
During fiscal Q3, Philip Morris reported an EPS of $1.91, surpassing estimates by 4.4%. This earnings beat was attributed to strong demand coupled with higher sales volumes and effective cost management, resulting in both increased revenue and earnings.
Future Earnings Forecast
Looking ahead to fiscal 2024, analysts expect the adjusted EPS to rise to $6.50, an 8.2% increase from $6.01 in fiscal 2023. By fiscal 2025, the adjusted EPS is projected to climb further to $7.10, representing a 9.2% growth year over year.
Stock Performance and Market Outlook
In the past year, shares of Philip Morris have increased by 29.8%, outperforming the S&P 500 Index, which provided a 26.5% return, and the Consumer Staples Select Sector SPDR Fund (XLP), which gained 6.8% during the same time frame.
Impact of Strong Q3 Results
On October 22, following impressive Q3 results, Philip Morris’ shares rose by 10.5%. The company reported net revenues climbed 8.4% year-over-year to $9.9 billion. Their smoke-free segment saw noteworthy expansion, shipping nearly 40 billion units, which constituted 38% of net revenues. Additionally, IQOS emerged as the second-largest nicotine brand, contributing to a 14.8% surge in heat-not-burn product sales.
Analysts Maintain Positive Outlook
The consensus rating for PM stock remains moderately bullish, holding an overall “Moderate Buy” rating. Of the 12 analysts covering the stock, seven have assigned a “Strong Buy,” one a “Moderate Buy,” three a “Hold,” and one a “Strong Sell.”
The average price target of $134.90 indicates a potential upside of 10.9% from current levels.
On the date of publication, Rashmi Kumari did not hold any direct or indirect positions in any of the securities mentioned. All information in this article is for informational purposes only. Please refer to the Barchart Disclosure Policy for more details.
The views expressed herein belong to the author and do not necessarily reflect the opinions of Nasdaq, Inc.
