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.
ETFs in Focus Post Philips Morris' Upbeat Earnings
Read MoreHide Full Article
This earnings season continues to show broad-based strength seen in the first half of the year. As of Oct 19, 84 companies of the S&P 500, accounting for 22.3% of index total market capitalization, reported Q3 results. Considering these, earnings are up 19.2% year over year on 8.4% higher revenues, with 82.1% topping earnings estimates and 61.9% beating revenue estimates.
Phillip Morris International (PM - Free Report) cheered its investors by beating earnings and revenue estimates for the third quarter (see: all the Consumer Staples ETFs).
Earnings in Focus
Earnings per share came in at $1.44 ahead of the $1.28 Zacks Consensus Estimate and 17 cents better year over year. Revenues improved 0.4% year over year and topped the estimates by $328 million. The quarterly results depict the strong business performance of the company mainly supported by the combustible product range and its favorable pricing policy (read: A Guide to Dividend ETF Investing)
Philip Morris maintains its estimated earnings for 2018 in the range of $4.97-$5.02, after considering the existing exchange rates. The Zacks Consensus Estimate for 2018 is $5.01.
Market Impact
This favorable result helped the market price rise nearly 2% in the pre-market trading session on Oct 18 — the day it reported quarterly results. The stock carries a top VGM Score of B.
However, it presently has a Zacks Rank #4 (Sell) indicating some pain in the near term and belongs to a bottom-ranked Zacks industry (bottom 26%). After all, cigarette shipment volume declined 1.7% to 195.1 billion units in the quarter, heated tobacco unit shipment volume of almost 8.7 billion units fell 11% year over year (read: Guide to E-commerce ETFs).
Based on this strong quarterly performance, the ETFs holding the stock could face some positive pricing action.
ETFs in Focus
Consumer Staples Select Sector SPDR Fund (XLP - Free Report)
The fund tracks the Consumer Staples Select Sector Index and comprises 32 holdings. Philip Morris occupies the fifth spot with 8.27% weight. AUM is $9.1 billion and expense ratio is 0.13%.
Fidelity MSCI Consumer Staples Index ETF (FSTA - Free Report)
It tracks the MSCI USA IMI Consumer Staples Index and comprises 89 holdings. The stock presently holds the fifth spot with 8.27% weight. AUM is $311.5 million and expense ratio is 0.08%.
The fund tracks the MSCI US Investable Market Consumer Staples 25/50 Index. It comprises 93 holdings with Philips Morris sitting at the fifth spot with 7.21% weight. AUM is $4.2 billion and expense ratio is 0.10%.
The fund tracks the Dow Jones U.S. Consumer Goods Index. It comprises 110 holdings. The Philips Morris stock occupies the fourth spot with weight of 6.69%. AUM is $506.3 million and expense ratio is 0.43%.
iShares Evolved U.S. Consumer Staples ETF
It is an actively managed fund comprising 127 holdings, with Philips Morris occupying the fourth spot (5.52% weight). AUM is $3.8 million and expense ratio is 0.18%.
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ETFs in Focus Post Philips Morris' Upbeat Earnings