Philip Morris beats Q2 revenue, profit estimates

Philip Morris International Inc.

Philip Morris International Inc.

PM

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Overview

  • Tobacco and nicotine products maker's Q2 revenue rose 10.4%, beating analyst expectations

  • Adjusted diluted EPS grew 15.2%, beating analyst expectations

  • Reported diluted EPS declined 7.7% due to non-cash impairment of RBH investment


Outlook

  • Philip Morris sees 2026 adjusted diluted EPS of $8.26-$8.41, including a $0.15 currency benefit

  • Company expects 2026 organic net revenue growth of 5%-7% and operating income growth of 7%-9%

  • Philip Morris forecasts high-single digit smoke-free product shipment growth, cigarette volume down 2%-3%


Result Drivers

  • SMOKE-FREE GROWTH - International smoke-free segment drove results with 8% shipment volume growth and 14.2% revenue growth, led by IQOS and e-vapor products

  • STRONG PRICING - Higher prices, especially in international combustibles, contributed to net revenue and gross profit growth

  • NON-CASH IMPAIRMENT - Reported EPS was negatively affected by a $511 mln non-cash impairment of the RBH equity investment


Company press release: ID:nBw4vVxgFa


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Beat

$11.20 bln

$10.63 bln (11 Analysts)

Q2 Adjusted EPS

Beat

$2.20

$2.05 (12 Analysts)

Q2 EPS

$1.80


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the tobacco peer group is "buy"

  • Wall Street's median 12-month price target for Philip Morris International Inc is $200.00, about 6.4% above its July 21 closing price of $188.04

  • The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 19 three months ago


Reuters Recommended Reads

  • July 21 - Spain seeks to extend smoking ban to terraces, include vapes

  • July 21 - Chocolate maker Lindt slightly misses H1 sales estimates on weak consumer sentiment

  • July 20 - Crown Holdings beats Q2 revenue on beverage can growth, raises FY adjusted diluted EPS guidance


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