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.
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.
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
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%.
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%.
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%.
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