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 (PM) Q4 Earnings Coming Up: What to Expect?
Read MoreHide Full Article
Philip Morris International Inc. (PM - Free Report) is likely to register top-and-bottom-line growth when it reports fourth-quarter 2023 earnings on Feb 8. The consensus mark for quarterly earnings has increased by a penny in the past 30 days to $1.44 per share, indicating growth of 3.6% from the year-ago quarter’s reported figure. PM has a trailing four-quarter earnings surprise of 5.8%, on average.
The Zacks Consensus Estimate for revenues is pegged at approximately $9 billion, suggesting an increase of 9.9% from the prior-year quarter’s reported figure.
Factors to Consider
Philip Morris has been benefiting from its strong pricing power. Though higher pricing might lead to a possible decline in cigarette consumption, it is seen that smokers tend to absorb price increases due to the addictive quality of cigarettes. Higher pricing variance has been an upside to the company’s performance for quite some time now.
Additionally, the company’s focus on smoke-free transformation has been a driver, as consumers increasingly gravitate toward reduced-risk products. Smoke-free products generated 36.2% of PM’s net revenues in the third quarter of 2023. Toward this end, the company’s IQOS, a heat-not-burn device, counts among one of the leading RRPs in the industry. Total IQOS users at the end of the third quarter were estimated at roughly 27.4 million (including nearly 19.7 million who switched to IQOS and stopped smoking).
Among other initiatives, Philip Morris became the majority owner of Swedish Match on Nov 11, 2022. The company witnessed impressive results from the Swedish Match business in the third quarter, driven by ZYN in the United States. On its last earnings call, management stated that it expects this strength to continue in 2023. These aspects bode well for the quarter under review. The Zacks Consensus Estimate for total smoke-free products (excluding Wellness and Healthcare) revenues is pegged at $3,433 million for the fourth quarter, calling for 19.8% growth from the $2,866 million reported in the year-ago period.
Philip Morris International Inc. Price, Consensus and EPS Surprise
However, the company has been witnessing soft cigarette volumes. We note that the overall cigarette industry has been bearing the brunt of the inflationary environment, which has affected Adult Tobacco Consumers’ spending patterns. Also, cigarette volumes have been affected by consumers’ rising health consciousness and a shift to low-risk tobacco alternatives. Philip Morris expects cigarette shipment volumes to decline 1-2% in 2023, which raises concerns for the fourth quarter as well.
On its third-quarter earnings call, Philip Morris also stated that it expects to make additional growth-oriented investments in 2023, including the commercialization of ILUMA. These are likely to have weighed on the company’s margins. While management expects robust organic operating margin growth in the fourth quarter of 2023, the same is likely to have declined toward the upper end of the 50-150 basis point range in the full year 2023.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Philip Morris this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Philip Morris has an Earnings ESP of -0.50%, while it carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies worth considering as our model shows that these have the correct combination to beat on earnings this time:
Inter Parfums (IPAR - Free Report) currently has an Earnings ESP of +11.27% and a Zacks Rank of 2. The company is likely to register a top-line increase when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Inter Parfums’ quarterly revenues is pegged at $329.1 million, indicating a rise of 5.9% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Inter Parfums’ quarterly earnings of 35 cents suggests a decrease of 50.7% from the year-ago quarter’s levels. IPAR has a trailing four-quarter earnings surprise of 45.7%, on average.
Coca-Cola (KO - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank of 2. KO is likely to register top-and-bottom-line growth when it reports the fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Coca-Cola’s quarterly revenues is pegged at $10.6 billion, suggesting growth of 5% from that reported in the prior-year quarter.
The Zacks Consensus Estimate for Coca-Cola’s quarterly earnings has been unchanged in the past 30 days at 48 cents per share. The consensus estimate for earnings suggests 6.7% growth from the year-ago quarter’s reported number. KO delivered an earnings beat of 5.1%, on average, in the trailing four quarters.
TreeHouse Foods (THS - Free Report) currently has an Earnings ESP of +7.04% and a Zacks Rank #2. THS is likely to record a top-and-bottom-line decline when it reports fourth-quarter 2023 results.
The Zacks Consensus Estimate for revenues is pegged at $926.9 million, indicating a 7% decline from the prior-year quarter’s actual. The consensus mark for earnings is pegged at 71 cents per share, implying a 27.6% decrease from that reported in the year-ago quarter. THS has a trailing four-quarter earnings surprise of 26.5%, on average.
Image: Bigstock
Philip Morris (PM) Q4 Earnings Coming Up: What to Expect?
Philip Morris International Inc. (PM - Free Report) is likely to register top-and-bottom-line growth when it reports fourth-quarter 2023 earnings on Feb 8. The consensus mark for quarterly earnings has increased by a penny in the past 30 days to $1.44 per share, indicating growth of 3.6% from the year-ago quarter’s reported figure. PM has a trailing four-quarter earnings surprise of 5.8%, on average.
The Zacks Consensus Estimate for revenues is pegged at approximately $9 billion, suggesting an increase of 9.9% from the prior-year quarter’s reported figure.
Factors to Consider
Philip Morris has been benefiting from its strong pricing power. Though higher pricing might lead to a possible decline in cigarette consumption, it is seen that smokers tend to absorb price increases due to the addictive quality of cigarettes. Higher pricing variance has been an upside to the company’s performance for quite some time now.
Additionally, the company’s focus on smoke-free transformation has been a driver, as consumers increasingly gravitate toward reduced-risk products. Smoke-free products generated 36.2% of PM’s net revenues in the third quarter of 2023. Toward this end, the company’s IQOS, a heat-not-burn device, counts among one of the leading RRPs in the industry. Total IQOS users at the end of the third quarter were estimated at roughly 27.4 million (including nearly 19.7 million who switched to IQOS and stopped smoking).
Among other initiatives, Philip Morris became the majority owner of Swedish Match on Nov 11, 2022. The company witnessed impressive results from the Swedish Match business in the third quarter, driven by ZYN in the United States. On its last earnings call, management stated that it expects this strength to continue in 2023. These aspects bode well for the quarter under review. The Zacks Consensus Estimate for total smoke-free products (excluding Wellness and Healthcare) revenues is pegged at $3,433 million for the fourth quarter, calling for 19.8% growth from the $2,866 million reported in the year-ago period.
Philip Morris International Inc. Price, Consensus and EPS Surprise
Philip Morris International Inc. price-consensus-eps-surprise-chart | Philip Morris International Inc. Quote
However, the company has been witnessing soft cigarette volumes. We note that the overall cigarette industry has been bearing the brunt of the inflationary environment, which has affected Adult Tobacco Consumers’ spending patterns. Also, cigarette volumes have been affected by consumers’ rising health consciousness and a shift to low-risk tobacco alternatives. Philip Morris expects cigarette shipment volumes to decline 1-2% in 2023, which raises concerns for the fourth quarter as well.
On its third-quarter earnings call, Philip Morris also stated that it expects to make additional growth-oriented investments in 2023, including the commercialization of ILUMA. These are likely to have weighed on the company’s margins. While management expects robust organic operating margin growth in the fourth quarter of 2023, the same is likely to have declined toward the upper end of the 50-150 basis point range in the full year 2023.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Philip Morris this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Philip Morris has an Earnings ESP of -0.50%, while it carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies worth considering as our model shows that these have the correct combination to beat on earnings this time:
Inter Parfums (IPAR - Free Report) currently has an Earnings ESP of +11.27% and a Zacks Rank of 2. The company is likely to register a top-line increase when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Inter Parfums’ quarterly revenues is pegged at $329.1 million, indicating a rise of 5.9% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Inter Parfums’ quarterly earnings of 35 cents suggests a decrease of 50.7% from the year-ago quarter’s levels. IPAR has a trailing four-quarter earnings surprise of 45.7%, on average.
Coca-Cola (KO - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank of 2. KO is likely to register top-and-bottom-line growth when it reports the fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Coca-Cola’s quarterly revenues is pegged at $10.6 billion, suggesting growth of 5% from that reported in the prior-year quarter.
The Zacks Consensus Estimate for Coca-Cola’s quarterly earnings has been unchanged in the past 30 days at 48 cents per share. The consensus estimate for earnings suggests 6.7% growth from the year-ago quarter’s reported number. KO delivered an earnings beat of 5.1%, on average, in the trailing four quarters.
TreeHouse Foods (THS - Free Report) currently has an Earnings ESP of +7.04% and a Zacks Rank #2. THS is likely to record a top-and-bottom-line decline when it reports fourth-quarter 2023 results.
The Zacks Consensus Estimate for revenues is pegged at $926.9 million, indicating a 7% decline from the prior-year quarter’s actual. The consensus mark for earnings is pegged at 71 cents per share, implying a 27.6% decrease from that reported in the year-ago quarter. THS has a trailing four-quarter earnings surprise of 26.5%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.