We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Philip Morris Beats Estimates in Q1 Earnings: ETFs in Focus
Read MoreHide Full Article
Philip Morris International (PM - Free Report) posted robust first-quarter 2024 results on Apr 23, wherein the top and bottom lines increased year over year and beat the Zacks Consensus Estimate. The company continued to benefit from strong pricing, along with a favorable shift in product mix and volume, primarily driven by increased HTU and ZYN volumes.
Q1 Performance in Detail
The tobacco company reported adjusted earnings per share (EPS) of $1.50, which jumped 8.7% from the year-ago quarter. Markedly, the bottom line beat the Zacks Consensus Estimate of $1.41 by 6.38%. Excluding currency movements, adjusted EPS for the quarter increased 23.2% year over year to $1.70.
Net revenues of $8.79 billion saw an increase of 11% on an organic basis from the same quarter last year. The Zacks Consensus Estimate for the top line was pegged at $8.44 billion, reflecting a positive surprise of 4.14%. Operating income for the quarter reached $3.05 billion, marking an increase of 23.5% from the year-ago quarter on an organic basis.
Total cigarette and HTU shipment volumes increased by 3.1% to 176.3 billion units in the quarter, driven by a 20.9% increase in HTU shipments across all regions. Cigarette shipment volumes dropped 0.4%, with Cigarette shipment volume for Marlboro increasing 1.7% to 56.9 billion units.
PM’s Quest for a Smoke-Free Future
The smoke-free business (SFB) of the world’s largest tobacco company accounted for about 39% of its total net revenues, highlighting Philip Morris’goal of transforming into a smoke-free enterprise. Continuing with its robust momentum, SFB’s top-line witnessed an organic growth of 24.8% year over year, with a 37.5% organic increase in its net profits.
Guidance
For 2024, PM expects adjusted EPS in the band of $6.19-$6.31. The company had reported EPS of $6.01 in 2023. Excluding currency movements, adjusted EPS is envisioned in the band of $6.55-$6.67, suggesting 9-11% growth from the year-ago reported figure. On a reported basis, management expects EPS in the range of $5.70-$5.82. The company’s EPS on a reported basis was $5.02 reported in 2023.
For 2024, PM expects net revenues to increase in the band of 7-8.5% on an organic basis, along with organic growth of 10-12% in its operating income.
However, the total international industry volume for cigarettes and HTUs (excluding China and the United States), is expected to decline by approximately 2% or remain unchanged.
ETF Impact
Here, we have highlighted some ETFs with significant exposure to Philip Morris.
iShares U.S. Consumer Staples ETF seeks to track the performance of the Russell 1000 Consumer Staples RIC 22.5/45 Capped Index, with a basket of 55 securities. The fund has gathered an asset base of $1.25 billion and charges an annual fee of 0.40%.
iShares U.S. Consumer Staples ETF has an exposure of 6.87% in PM. The fund has gained 6.27% over the past three months and 4.65% over the past year.
First Trust Morningstar Dividend Leaders Index Fund (FDL - Free Report)
First Trust Morningstar Dividend Leaders Index Fund seeks to track the performance of the Morningstar Dividend Leaders Index with a basket of 91 securities. The fund has gathered an asset base of $3.89 billion and charges an annual fee of 0.45%.
First Trust Morningstar Dividend Leaders Index Fund has an exposure of 6.55% in PM. The fund has gained 8.19% over the past three months and 13.61% over the past year.
Cambria Cannabis ETF employs an active strategy and has a basket of 26 securities. The fund has amassed an asset base of $9.8 million and charges an annual fee of 0.42%.
Cambria Cannabis ETF has an exposure of 5.63% in PM. The fund has gained 10.34% over the past three months and 6.50% over the past year.
Invesco S&P Ultra Dividend Revenue ETF seeks to track the performance of the S&P 900 Dividend Revenue-Weighted Index, with a basket of 61 securities. The fund has amassed an asset base of $735.8 million and charges an annual fee of 0.39%.
Invesco S&P Ultra Dividend Revenue ETF has an exposure of 5% in PM. The fund has gained 6.16% over the past three months and 16.21% over the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Philip Morris Beats Estimates in Q1 Earnings: ETFs in Focus
Philip Morris International (PM - Free Report) posted robust first-quarter 2024 results on Apr 23, wherein the top and bottom lines increased year over year and beat the Zacks Consensus Estimate. The company continued to benefit from strong pricing, along with a favorable shift in product mix and volume, primarily driven by increased HTU and ZYN volumes.
Q1 Performance in Detail
The tobacco company reported adjusted earnings per share (EPS) of $1.50, which jumped 8.7% from the year-ago quarter. Markedly, the bottom line beat the Zacks Consensus Estimate of $1.41 by 6.38%. Excluding currency movements, adjusted EPS for the quarter increased 23.2% year over year to $1.70.
Net revenues of $8.79 billion saw an increase of 11% on an organic basis from the same quarter last year. The Zacks Consensus Estimate for the top line was pegged at $8.44 billion, reflecting a positive surprise of 4.14%. Operating income for the quarter reached $3.05 billion, marking an increase of 23.5% from the year-ago quarter on an organic basis.
Total cigarette and HTU shipment volumes increased by 3.1% to 176.3 billion units in the quarter, driven by a 20.9% increase in HTU shipments across all regions. Cigarette shipment volumes dropped 0.4%, with Cigarette shipment volume for Marlboro increasing 1.7% to 56.9 billion units.
PM’s Quest for a Smoke-Free Future
The smoke-free business (SFB) of the world’s largest tobacco company accounted for about 39% of its total net revenues, highlighting Philip Morris’goal of transforming into a smoke-free enterprise. Continuing with its robust momentum, SFB’s top-line witnessed an organic growth of 24.8% year over year, with a 37.5% organic increase in its net profits.
Guidance
For 2024, PM expects adjusted EPS in the band of $6.19-$6.31. The company had reported EPS of $6.01 in 2023. Excluding currency movements, adjusted EPS is envisioned in the band of $6.55-$6.67, suggesting 9-11% growth from the year-ago reported figure. On a reported basis, management expects EPS in the range of $5.70-$5.82. The company’s EPS on a reported basis was $5.02 reported in 2023.
For 2024, PM expects net revenues to increase in the band of 7-8.5% on an organic basis, along with organic growth of 10-12% in its operating income.
However, the total international industry volume for cigarettes and HTUs (excluding China and the United States), is expected to decline by approximately 2% or remain unchanged.
ETF Impact
Here, we have highlighted some ETFs with significant exposure to Philip Morris.
iShares U.S. Consumer Staples ETF (IYK - Free Report)
iShares U.S. Consumer Staples ETF seeks to track the performance of the Russell 1000 Consumer Staples RIC 22.5/45 Capped Index, with a basket of 55 securities. The fund has gathered an asset base of $1.25 billion and charges an annual fee of 0.40%.
iShares U.S. Consumer Staples ETF has an exposure of 6.87% in PM. The fund has gained 6.27% over the past three months and 4.65% over the past year.
First Trust Morningstar Dividend Leaders Index Fund (FDL - Free Report)
First Trust Morningstar Dividend Leaders Index Fund seeks to track the performance of the Morningstar Dividend Leaders Index with a basket of 91 securities. The fund has gathered an asset base of $3.89 billion and charges an annual fee of 0.45%.
First Trust Morningstar Dividend Leaders Index Fund has an exposure of 6.55% in PM. The fund has gained 8.19% over the past three months and 13.61% over the past year.
Cambria Cannabis ETF (TOKE - Free Report)
Cambria Cannabis ETF employs an active strategy and has a basket of 26 securities. The fund has amassed an asset base of $9.8 million and charges an annual fee of 0.42%.
Cambria Cannabis ETF has an exposure of 5.63% in PM. The fund has gained 10.34% over the past three months and 6.50% over the past year.
Invesco S&P Ultra Dividend Revenue ETF (RDIV - Free Report)
Invesco S&P Ultra Dividend Revenue ETF seeks to track the performance of the S&P 900 Dividend Revenue-Weighted Index, with a basket of 61 securities. The fund has amassed an asset base of $735.8 million and charges an annual fee of 0.39%.
Invesco S&P Ultra Dividend Revenue ETF has an exposure of 5% in PM. The fund has gained 6.16% over the past three months and 16.21% over the past year.