Philip Morris International Inc. (PM), headquartered in Stamford, Connecticut, is a leading global tobacco company dedicated to delivering innovative and science-based alternatives to traditional cigarettes. With a market cap of $189.1 billion, Philip Morris is at the forefront of transforming the tobacco industry with its smoke-free products, aiming to create a future without cigarettes. The company is set to release its Q4 earnings before the market opens on Thursday, Feb. 6.
Ahead of the event, analysts expect Philip Morris to report a profit of $1.51 per share, up 11% from $1.36 per share reported in the year-ago quarter. The company surpassed the consensus estimates in three of the last four quarters while missing the forecast on one other occasion.
In fiscal Q3, the company reported an EPS of $1.91, which topped the consensus estimates by 4.4%. The earnings beat was driven by strong demand, higher sales volumes, and effective cost management, resulting in higher-than-expected revenue and earnings.
For fiscal 2024, analysts expect Philip Morris to report an adjusted EPS of $6.50, up 8.2% from $6.01 in fiscal 2023. In fiscal 2025, its adjusted EPS is expected to grow 9.2% year over year to $7.10.
Philip Morris' shares have gained 29.8% over the past 52 weeks, outperforming the S&P 500 Index's ($SPX) 26.5% return and the Consumer Staples Select Sector SPDR Fund’s (XLP) 6.8% gains during the same period.
Philip Morris' shares rose 10.5% on Oct. 22, following a strong Q3 performance. Net revenues increased 8.4% year over year to $9.9 billion. The smoke-free business saw significant growth, with nearly 40 billion units shipped, accounting for 38% of net revenues. At the same time, IQOS solidified its position as the second-largest nicotine brand, driving a 14.8% increase in heat-not-burn product sales.
The consensus opinion on the PM stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 12 analysts covering the stock, seven recommend a “Strong Buy,” one suggests a “Moderate Buy,” three advise a “Hold,” and one gives a “Strong Sell” rating.
The mean price target of $134.90 suggests a potential upside of 10.9% from current price levels.
