Philip Morris International Inc. (PM - Free Report) , one of the largest tobacco companies, came out with second-quarter 2018 results, wherein adjusted earnings of $1.41 surpassed the Zacks Consensus Estimate of $1.23 and also surged 23.7% from the prior-year quarter.
Earnings Estimate Revision: The Zacks Consensus Estimate for 2018 has trended downward in the last 30 days. Also, in the trailing four quarters (excluding the quarter under review) the company missed the Zacks Consensus Estimate by an average of 1.5%.
Revenues: Philip Morris generated net revenues of $7,726 million that jumped 11.7% year over year. Top-line also came ahead of the Zacks Consensus Estimate of $7,528 million.
Key Events: During the quarter the company raised its quarterly dividend by 6.5%, taking it from $1.07 per share to $1.14.
Outlook: Management has updated its 2018 outlook on account of certain factors including the impacts from various product and marketing efforts.
Reported earnings for the fiscal are now expected in the range of $5.02-$5.12 per share, which reflects year-over-year growth of 29%-32%. Excluding a favorable currency impact, the company now anticipates adjusted earnings growth of nearly 8%-10%, in comparison to the old projection of 8%-11%.
Further, the updated guidance takes into consideration currency neutral revenue growth of 3%-4%, compared to the previous expectation of 8%.
Stock Movement: Shares of the company are down almost 3% in the pre-market trading session.
Zacks Rank: Currently, Philip Morris has a Zacks Rank #3 (Hold), which is subject to change following the earnings announcement.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Check back later for our full write up on Philip Morris’s earnings report!
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