Philip Morris International Inc. (PM), headquartered in Stamford, Connecticut, is an international tobacco company actively delivering a smoke-free future and evolving its portfolio to include products outside of tobacco and nicotine. Valued at $157.66 billion by market cap, the company’s current product portfolio primarily consists of cigarettes and smoke-free products. The tobacco giant is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Tuesday, July 23.
Ahead of the event, analysts expect PM to report a profit of $1.55 per share on a diluted basis, down 3.1% from $1.60 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on one other occasion. In Q1, its net income was $2.15 billion, and adjusted EPS was $1.50, beating the consensus estimate of $1.41. The company expects full-year earnings to come between $6.19 and $6.31.
For fiscal 2024, analysts expect PM to report EPS of $6.32, up 5.2% from $6.01 in fiscal 2023.
PM stock has underperformed the S&P 500’s ($SPX) 16.2% gains on a YTD basis, with shares up 7.3% during this period. However, it has outperformed the US Consumer Goods iShares ETF’s (IYK) 2.3% returns over the same time frame.
On Jun. 18, PM shares fell more than 1% after the company stopped the nationwide sales of its Zyn nicotine pouches on its U.S. website after its affiliate Swedish Match North America received a subpoena from D.C.’s Attorney General requesting information about its compliance with D.C.’s 2022 ban on the sale of all flavored tobacco.
PM’s recent performance can be attributed to the anticipated launch of IQOS, its flagship heated tobacco device in the U.S. IQOS is the latest and most innovative addition to its portfolio of smoke-free products, and the company was looking to launch it in Austin, Texas, according to a Reuters report. Meanwhile, PM is looking to launch IQOS in four U.S. cities in two states this year, with a broader roll-out expected in 2025.
Analysts’ consensus opinion on PM stock is bullish, with a “Moderate Buy” rating overall. Out of 13 analysts covering the stock, eight advise a “Strong Buy” rating, four have a “Hold” rating, and one gives a “Strong Sell.” The average analyst price target for PM is $107.64, indicating a 6.1% potential upside from the current levels.
On the date of publication, Dipanjan Banchur 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.
