Latest news with #PhilipMorrisInternational
Yahoo
2 days ago
- Business
- Yahoo
Philip Morris International Second Quarter 2025 Earnings: EPS Beats Expectations, Revenues Lag
Philip Morris International (NYSE:PM) Second Quarter 2025 Results Key Financial Results Revenue: US$10.1b (up 7.1% from 2Q 2024). Net income: US$3.03b (up 26% from 2Q 2024). Profit margin: 30% (up from 25% in 2Q 2024). EPS: US$1.95 (up from US$1.54 in 2Q 2024). We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. All figures shown in the chart above are for the trailing 12 month (TTM) period Philip Morris International EPS Beats Expectations, Revenues Fall Short Revenue missed analyst estimates by 1.9%. Earnings per share (EPS) exceeded analyst estimates by 9.0%. Looking ahead, revenue is forecast to grow 7.5% p.a. on average during the next 3 years, compared to a 2.5% growth forecast for the Global Tobacco industry. Performance of the market in the US. The company's shares are down 11% from a week ago. Risk Analysis We don't want to rain on the parade too much, but we did also find 2 warning signs for Philip Morris International (1 is a bit unpleasant!) that you need to be mindful of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
3 days ago
- Business
- Yahoo
Philip Morris International Shares Tumble: Time to Run for the Hills or Buy the Dip?
Key Points Philip Morris International shares fell after the company's second-quarter report, despite strong earnings and increased EPS guidance. The company is expecting to see cigarette sales volumes decline in the second half. The real story at Philip Morris is about the continued strong growth of Zyn and Iqos. 10 stocks we like better than Philip Morris International › Philip Morris International (NYSE: PM) stock has had a strong 2025 so far, but the shares pulled back after the company reported its second-quarter results. That dip left the stock up about 36% on the year, as of this writing. Is the recent slide a buying opportunity or should investors be running for the hills? Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Strong volume growth The Zyn brand remains the driving force behind Philip Morris' robust sales growth. Shipments of the popular nicotine pouches jumped 40% in the U.S. to 190 million cans in Q2, while retail sales volumes (offtake) grew by 26% in the quarter and by 36% in June. Outside of the U.S. and Nordic countries, Zyn shipments more than doubled, and it is now available in 44 markets. Overall oral product shipments climbed 23.8% on a pouch basis. The company said Zyn restocking in the U.S. is now effectively complete. It continues to expect U.S. Zyn shipments to be between 800 million and 840 million cans for the year. Image source: Getty Images The rest of Philip Morris' smokeless portfolio also performed well. Sales volumes of its heated tobacco units (HTUs), including the Iqos system, jumped nearly 9.2% to 38.8 billion units. The company said in-market sales (to end users) jumped 11.4%. Iqos continues to perform well in Japan and Europe and is seeing strong growth in other major cities outside its two main markets. Philip Morris also once again saw shipment growth more than double for its e-vapor product, Veev, driven by pod growth in Europe. Veev is now in 42 markets and holds the No. 1 market share in six European markets. Traditional cigarette volumes, meanwhile, fell by 1.5% to 155.2 billion units. Segment organic revenue, however, grew 2% to $6 billion, and gross profits for the category climbed 5% to $4 billion, as the company's price hikes more than compensated for those volume declines. Overall, organic revenue, which excludes currency effects, acquisitions, and dispositions, rose 6.8% year over year to $10.1 billion. Adjusted earnings per share (EPS) climbed 20% to $1.91. Oral Products (Zyn) HTUs Cigarettes Smoke-Free Total Volume growth 23.8% 9.2% (1.5%) N/A 1.2% Organic revenue growth N/A N/A 2% 14.5% 6.8% HTUs = heated tobacco units. Management maintained its full-year guidance for organic revenue while upping its adjusted EPS forecast. It continues to expect strong results from both Zyn and Iqos, but expects a 3% to 4% decline in traditional cigarette volumes due to ongoing issues in Turkey and Indonesia. The headwind in Turkey is related to supply chain issues following a change in regulatory requirements, while in Indonesia, it's battling to keep market share in the face of growing sales of illicit cigarettes. However, it's still expecting solid gross profit growth from its combustible tobacco business due to its pricing power and cost efficiencies. Metric Prior Guidance Updated Guidance Organic revenue growth 6% to 8% 6% to 8% Adjusted EPS $7.01 to $7.14 $7.43 to $7.56 Adjusted EPS growth* 10.5% to 12.5% $7.33 to $7.46 Volume growth 2% 1% Data source: Philip Morris International. *Adjusted EPS growth excludes currency exchange impacts. EPS = earnings per share. Should investors buy the dip? While investors may have been disappointed by Philip Morris' forecast for steeper declines in cigarette sales volumes in the second half, about half of that is due to a temporary issue around its Turkish supply chain. Meanwhile, the big reason to own the stock is its smoke-free portfolio, led by Zyn and Iqos. Both products continue to demonstrate strong growth and have better unit economics than Philip Morris' traditional cigarette business. It's also expanding these products to new markets, with early signs of success. Importantly, the company is hoping that the FDA will approve the Iqos Iluma for sale in the U.S. later this year, which would set it up to enter this market now that it has reacquired its U.S. rights from Altria. From a valuation perspective, the stock got cheaper when management raised its EPS guidance and its share price fell. The stock now trades at a forward price-to-earnings (P/E) ratio of under 22, based on the analyst consensus for 2025, with a PEG (price/earnings-to-growth) ratio of under 0.35. Stocks with positive PEG ratios below 1 are generally viewed as undervalued. While at the current share price, Philip Morris' dividend has a nice 3.3% forward yield, that's not as high a yield as other tobacco stocks. However, what it lacks in yield, it makes up for by being a unique growth stock in a defensive industry. This is a stock you'll want to own over the long haul, and the dip in the stock price offers a nice buying opportunity. Should you invest $1,000 in Philip Morris International right now? Before you buy stock in Philip Morris International, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Philip Morris International wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Geoffrey Seiler has positions in Philip Morris International. The Motley Fool recommends Philip Morris International. The Motley Fool has a disclosure policy.
Wall Street Journal
22-07-2025
- Business
- Wall Street Journal
Philip Morris Shares Drop 7% on Lower-Than-Expected Volumes of Zyn Pouches
Philip Morris International's PM -7.09%decrease; red down pointing triangle shares fell nearly 7% as its quarterly revenue missed forecasts and it shipped fewer tins of its popular nicotine pouch Zyn than expected. The tobacco company also said that its total product shipments may be lower in the second half of this year compared with last year, weighed down by an expected 2% decline in cigarette volume for the full year.
Time of India
22-07-2025
- Business
- Time of India
Cigarette-maker Philip Morris' shares slide 7% after quarterly revenue miss
Philip Morris International (PMI) missed second-quarter revenue expectations on Tuesday as shipments of its ZYN nicotine pouches disappointed. Shares in the world's largest tobacco company by market capitalization dropped about 7% in early New York trade, even as the company raised its full-year profit guidance. Explore courses from Top Institutes in Please select course: Select a Course Category MBA Technology Public Policy others CXO healthcare Data Science Product Management Management Cybersecurity MCA Artificial Intelligence Finance Data Science Project Management PGDM Data Analytics Degree Operations Management Digital Marketing Healthcare Design Thinking Others Leadership Skills you'll gain: Financial Management Team Leadership & Collaboration Financial Reporting & Analysis Advocacy Strategies for Leadership Duration: 18 Months UMass Global Master of Business Administration (MBA) Starts on May 13, 2024 Get Details Skills you'll gain: Analytical Skills Financial Literacy Leadership and Management Skills Strategic Thinking Duration: 24 Months Vellore Institute of Technology VIT Online MBA Starts on Aug 14, 2024 Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like An engineer reveals: One simple trick to get internet without a subscription Techno Mag Learn More Undo PMI has been faster than its peers to transition from traditional tobacco products to smoking alternatives, such as ZYN, which has grown rapidly to become PMI's star product. Cigarettes, however, remain the main engine of PMI's business, and are in decline. PMI also faces regulatory challenges and tough economic conditions have hit consumers' wallets. While PMI's total sales rose 7.1% to $10.14 billion in the latest quarter, they fell short of analysts' average estimate of $10.33 billion, as per data compiled by LSEG. Live Events Shipment volumes in the group's cigarettes business declined 1.5%, whereas volumes in PMI's nicotine pouch business rose 23.8%. However, ZYN shipments of 190 million cans were behind the 203 million expected by analysts, Bernstein's Callum Elliot said in a note, adding that PMI's strong performance in recent quarters has led investors to set high expectations. "These numbers risk being not quite 'good enough' for the higher bar that PMI is likely to be held to today," he wrote. PMI said it saw steady growth in inhalable alternative nicotine products, notably its flagship heated tobacco device IQOS, across Europe and Japan and big cities such as Jakarta, Mexico and Seoul. The company said this, as well as a "resilient" performance in cigarettes and record net revenues, meant it would raise its full-year guidance. It now expects an adjusted profit of $7.43 to $7.56 per share for the year, compared with its prior forecast of $7.36 to $7.49. Its second-quarter adjusted profit of $1.95 per share beat market estimates of $1.86 per share. The company aims to generate two-thirds of its net revenues from smoking alternatives by 2030.
Reuters
22-07-2025
- Business
- Reuters
Philip Morris's revenue misses estimates as cigarette volumes drop
July 22 (Reuters) - Philip Morris International (PMI) (PM.N), opens new tab, which makes Marlboro cigarettes, reported second-quarter revenue on Tuesday that fell short of analysts' estimates as cigarette sales volumes slipped. The company's shares dropped about 5% in premarket trading. While PMI has been faster than its peers to transition from traditional tobacco products to smoke-free alternatives, such as its flagship heated tobacco device IQOS and nicotine pouch brand ZYN, it is still grappling with sharp declines in tobacco use. Tobacco products, including cigarettes, are still the main engine of PMI's business, and besides competition from smoke-free products, regulatory headwinds and tough economic conditions have hit consumers' wallets. As a result, while PMI's total sales rose 7.1% to $10.14 billion in the latest quarter, it fell short of analysts average estimate of $10.33 billion, as per data compiled by LSEG. Shipment volumes in its cigarettes business declined 1.5%, while, in contrast, volumes in oral smoke-free products business rose 23.8%. PMI saw steady growth in inhalable alternative nicotine products, notably of IQOS, across Europe and Japan and cities such as Jakarta, Mexico and Seoul. Earlier this year, PMI began selling IQOS on a small scale in the United States, a move that ultimately is expected to help fuel its push to diversify revenue streams beyond cigarettes. In the fast-growing nicotine pouches market, PMI's ZYN is already a U.S. market leader. PMI, whose shift from cigarettes has been faster than rivals Altria (MO.N), opens new tab and BATS (BATS.L), opens new tab, aims to generate half of its sales from smoking alternatives by the end of 2025. The company's second-quarter adjusted profit of $1.95 per share beat market estimates of $1.86 per share. It expects an adjusted profit of $7.43 to $7.56 per share for the year, compared with its prior forecast of $7.36 to $7.49.
