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Key Takeaways
- The share price of Philip Morris soared to a record high on Wednesday after the company exceeded its first-quarter expectations.
- The company raised its profit forecasts by a full year due to the strong sales of smokeless products such as Zyn Nicotine Pouches.
- The company also halted plans to sell or spin off its cigar business after a "thorough review and evaluation" of options in the "current environment."
Philip Morris International (PM), the tobacco giant, surpassed its first-quarter profit forecast and boosted its outlook for the full year.
Philip Morris, a manufacturer of cigarettes and smokeless tobacco products, reported adjusted earnings per Share (EPS) of 1,69 dollars on revenue of 9,30 billion dollars. Both figures were above Visible Alpha’s consensus. Philip Morris’ smoke-free business accounted for 42% of the company’s Q1 revenue, led by sales of Zyn nicotine pouches.
In recent trading, shares were up over 2% to $167.55. They had previously reached a record high of $171.63.
Philip Morris Raises FY Profit Projection
Philip Morris has raised its full year adjusted EPS profit forecast to a $7.36-$7.49 range from $7.04-$7.17. "We remain confident in our ability to deliver superior results, despite an uncertain and volatile global economic environment, and now forecast double-digit adjusted diluted EPS growth in dollar terms for the full-year," CEO Jacek Olczak said.
The conglomerate also said it has halted plans to sell or spin off its cigar business as part of its shift to a future focused on smokeless products, "following a thorough review and evaluation of strategic options taking the current environment into consideration."
