Connecticut-based Philip Morris International Inc. (PM) is a leading global tobacco company known for its iconic brand, Marlboro. It aims to become a majority smoke-free company by 2030, investing over $12.5 billion in developing and commercializing alternative products since 2008. With a market cap of $187.5 billion, Philip Morris has a presence in over 180 countries. The tobacco giant is expected to release its Q3 earnings before the market opens on Tuesday, Oct. 22.
Ahead of the event, analysts expect Philip Morris to report a profit of $1.83 per share, up 9.6% from $1.67 per share reported in the year-ago quarter. The company has surpassed Wall Street’s adjusted EPS projections thrice over the past four quarters while missing the estimates on one occasion. Its adjusted EPS for the last reported quarter saw a marginal decline but exceeded the consensus estimates by 2.6%.
For fiscal 2024, analysts expect Philip Morris to report an adjusted EPS of $6.45, up 7.3% from $6.01 in fiscal 2023. In fiscal 2025, its adjusted EPS is expected to grow 9.9% year-over-year to $7.09.
PM has gained 27.1% on a YTD basis, substantially outperforming the S&P 500 Index’s ($SPX) 19.7% gains and the Consumer Staples Select Sector SPDR Fund’s (XLP) 13.9% returns during the same time frame.
Shares of Philip Morris rose 2.2% and continued to rally for the next eight trading sessions after the release of its better-than-expected Q2 earnings report on Jul. 23. The company reported 5.6% annual revenue growth, totaling $9.5 billion and exceeding Wall Street’s estimates. Moreover, Philip Morris’ net earnings to shareholders grew by an impressive 53.4%, reaching $2.4 billion.
Additionally, the company raised its full-year guidance despite facing headwinds in foreign exchange. It expects its EPS to be between $5.89 and $6.01, bolstering investor confidence.
The consensus opinion on the PM stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 11 analysts covering the stock, seven recommend “Strong Buy,” three suggest “Moderate Buy,” and one advises a “Strong Sell” rating.
The mean price target of $125 suggests a potential upside of 4.5% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
