Philip Morris International Inc. PM, the world’s leading tobacco company, came out with first-quarter 2017 results, wherein adjusted earnings of 98 cents a share missed the Zacks Consensus Estimate of $1.03 but remained flat year over year.
Earnings Estimate Revision: The Zacks Consensus Estimate for 2017 has increased by a penny in the last seven days. However, in the trailing four quarters, excluding quarter under review, the company missed the Zacks Consensus Estimate by an average of nearly 4%.
Revenues: Philip Morris’ net revenues (excluding excise taxes) dipped 0.3% to $6,064 million, and also came below the Zacks Consensus Estimate of $6,427 million. While excluding adverse currency impact of $120 million, the same advanced 1.7%, backed by a positive pricing variance across all the regions, mainly EEMA and Asia.
Guidance: Philip Morris provided guidance for 2017. The company expects its 2017 diluted earnings per share in the band of $4.84–$4.99, compared with $4.48 in 2016. Excluding adverse effect of currency of 8 cents expected in 2017 and favorable tax item of 4 cents reported in the first quarter, this guidance reflects a growth of nearly 9–12% over the adjusted earnings of $4.48 delivered in 2016. The Zacks Consensus Estimate for 2017 is currently pegged at $4.90.
Further, this guidance reflects revenue growth (excluding excise taxes), more than its present target growth, which in the range 4–6%, annually. Moreover, the outlook excludes share repurchases in the year.
Zacks Rank: Currently, Philip Morris carries a Zacks Rank #2 (Buy) which is subject to change following the earnings announcement. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stock Movement: Philip Morris’ shares are down nearly 3.4% during pre-market trading hours following the company’s dismal earnings release.
Check back later for our full write up on Philip Morris’ earnings report!
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