Shares of Philip Morris International Inc. (PM Quick QuotePM - Free Report) dropped 3.45% at market close on Thursday, April 21, 2017. The company reported a 13.01% decrease in revenues quarter-over-quarter. Revenues came in at $6.064 billion in the first quarter of 2017compared with $6.971 billion in the fourth quarter of 2016 and $6.083 billion in the year-ago quarter. It failed to beat the Zacks Consensus Estimate on both earnings and sales in the first quarter of 2017 (read: Philip Morris Misses Q1 Earnings and Sales; Stock Down April 20, 2017)

 

 

Philip Morris reported non-GAAP earnings per share of $0.98, falling short of the Zacks Consensus Estimate of $1.03. Revenues also missed the consensus mark of $6.427 billion. The tobacco company reported operating incomeof$2.4 billion, down 3.1% year-over-year.

 

 

The company’s total shipment volume was 177.987 billion units, down 9.41% from196.494 billion units in first-quarter 2016. The decline was due to a sharp fall of 11.47% in shipment of cigarettes to 173.552 from 196.041 billion units in the year-ago quarter. However, heated tobacco unit shipments were up to 4.435 billion units from 453 million units in first quarter of 2016. 

 

 

Philip Morris expects its full-year 2017 earnings per share to be in the range of $4.84-$4.99compared with$4.48 in 2016. This forecast represents 9%-12% growth over the 2016 figure, excluding the impact of adverse currency movement of $0.08 for the full year and a tax item in the first quarter of $0.04.

 

In the current scenario, let’s have a look at the following ETFs that have a relatively high exposure to Philip Morris.

 

Consumer Staples Select Sector SPDR Fund (XLP Quick QuoteXLP - Free Report)

 

This fund offers exposure to the Consumer Staples sector of the U.S. It has AUM of $9.09 billion and charges a fee of 14 basis points a year. It has 9.25% exposure to Philip Morris (as of March 31, 2017). The fund returned 6.16% in the past one year and 6.67% in the year-to-date timeframe (as of April 20, 2017). The fund was down 0.2% at market close on April 20, 2017. XLP currently has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: Can Strong PG Earnings Do Any Good to Soft Staples ETFs?).

 

Fidelity MSCI Consumer Staples Index ETF (FSTA Quick QuoteFSTA - Free Report)

 

This fund offers exposure to the Consumer Staples sector of the U.S. at a very cheap expense ratio. It has AUM of $292.4 million and charges a fee of 8 basis points a year. It has an 8.49% exposure to Philip Morris (as of April 19, 2017). The fund returned 6.86% in the past one year and 6.31% in the year-to-date timeframe (as of April 20, 2017). The fund was down 0.18% at market close on April 20, 2017. STA currently has a Zacks ETF Rank #3 with a Medium risk outlook.

 

Vanguard Consumer Staples ETF (VDC Quick QuoteVDC - Free Report)

 

This fund is one of the most popular funds in the Consumer Staples sector of the U.S. It has AUM of $3.6 billion and charges a fee of 12 basis points a year. It has 7.9% exposure to Philip Morris (as of March 31, 2017). The fund returned 6.95% in the past one year and 5.95% in the year-to-date timeframe (as of April 20, 2017). The fund was down 0.11% at market close on April 20, 2017. VDC currently has a Zacks ETF Rank #3 with a Medium risk outlook.

 

Given below is a chart for comparing the year-to-date performance of the funds and Philip Morris.

 

Source: Yahoo Finance

 

 

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Shares of Philip Morris International Inc. (PM Quick QuotePM - Free Report) dropped 3.45% at market close on Thursday, April 21, 2017. The company reported a 13.01% decrease in revenues quarter-over-quarter. Revenues came in at $6.064 billion in the first quarter of 2017compared with $6.971 billion in the fourth quarter of 2016 and $6.083 billion in the year-ago quarter. It failed to beat the Zacks Consensus Estimate on both earnings and sales in the first quarter of 2017 (read: Philip Morris Misses Q1 Earnings and Sales; Stock Down April 20, 2017)

Q1 Performance

Philip Morris reported non-GAAP earnings per share of $0.98, falling short of the Zacks Consensus Estimate of $1.03. Revenues also missed the consensus mark of $6.427 billion. The tobacco company reported operating incomeof$2.4 billion, down 3.1% year-over-year.

Shipment Volume

The company’s total shipment volume was 177.987 billion units, down 9.41% from196.494 billion units in first-quarter 2016. The decline was due to a sharp fall of 11.47% in shipment of cigarettes to 173.552 from 196.041 billion units in the year-ago quarter. However, heated tobacco unit shipments were up to 4.435 billion units from 453 million units in first quarter of 2016. 

Outlook

Philip Morris expects its full-year 2017 earnings per share to be in the range of $4.84-$4.99compared with$4.48 in 2016. This forecast represents 9%-12% growth over the 2016 figure, excluding the impact of adverse currency movement of $0.08 for the full year and a tax item in the first quarter of $0.04.

In the current scenario, let’s have a look at the following ETFs that have a relatively high exposure to Philip Morris.

Consumer Staples Select Sector SPDR Fund (XLP Quick QuoteXLP - Free Report)

This fund offers exposure to the Consumer Staples sector of the U.S. It has AUM of $9.09 billion and charges a fee of 14 basis points a year. It has 9.25% exposure to Philip Morris (as of March 31, 2017). The fund returned 6.16% in the past one year and 6.67% in the year-to-date timeframe (as of April 20, 2017). The fund was down 0.2% at market close on April 20, 2017. XLP currently has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: Can Strong PG Earnings Do Any Good to Soft Staples ETFs?).

Fidelity MSCI Consumer Staples Index ETF (FSTA Quick QuoteFSTA - Free Report)

This fund offers exposure to the Consumer Staples sector of the U.S. at a very cheap expense ratio. It has AUM of $292.4 million and charges a fee of 8 basis points a year. It has an 8.49% exposure to Philip Morris (as of April 19, 2017). The fund returned 6.86% in the past one year and 6.31% in the year-to-date timeframe (as of April 20, 2017). The fund was down 0.18% at market close on April 20, 2017. STA currently has a Zacks ETF Rank #3 with a Medium risk outlook.

Vanguard Consumer Staples ETF (VDC Quick QuoteVDC - Free Report)

This fund is one of the most popular funds in the Consumer Staples sector of the U.S. It has AUM of $3.6 billion and charges a fee of 12 basis points a year. It has 7.9% exposure to Philip Morris (as of March 31, 2017). The fund returned 6.95% in the past one year and 5.95% in the year-to-date timeframe (as of April 20, 2017). The fund was down 0.11% at market close on April 20, 2017. VDC currently has a Zacks ETF Rank #3 with a Medium risk outlook.

Given below is a chart for comparing the year-to-date performance of the funds and Philip Morris.

 

Source: Yahoo Finance

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