Philip Morris Provides Upbeat Outlook as Earnings Beat Estimates
(Bloomberg) -- Philip Morris International Inc. provided a better-than-expected earnings forecast three months after the cigarette maker abandoned its outlook amid the pandemic.
- Adjusted earnings per share will range between $4.92 to $5.07 this year, compared with a consensus analyst estimate of $4.94, Philip Morris said.
- Adjusted earnings per share amounted to $1.29 in the second quarter. Analysts expected $1.10.
- The company had previously pulled its forecast for adjusted EPS of at least $5.50 in April. Investors are likely to be pleased with the increased visibility.
- Heated-tobacco unit shipments rose 24% to 18.7 billion units. That number is poised to get a boost going forward after the U.S. Food and Drug Administration gave the green light to market it as a modified-risk product earlier this month.
- The quarter was supported by a strong recovery in industry volume, especially in Europe, as well as a strong increase in consumers starting to use its heated-tobacco product IQOS.
- The shares have fallen 14% so far this year. They rose 1.5% in premarket U.S. trading.
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