Key Takeaways
- Demand for Philip Morris International’s smoke-free products helped the tobacco giant beat fourth-quarter profit and sales estimates.
- The maker of Marlboro cigarettes and ZYN nicotine patches also gave better-than-expected guidance.
- The news sent shares of Philip Morris to a record high.
Philip Morris International (PM) shares traded at an all-time high Thursday after the tobacco giant posted better-than-expected results and guidance on soaring demand for its non-smoking alternatives.
The maker of Marlboro cigarettes and ZYN nicotine pouches reported fourth-quarter adjusted earnings per share (EPS) of $1.55, with revenue rising 7% year-over-year to $9.7 billion. Both exceeded Visible Alpha forecasts.
Sales of its smoke-free products gained 9% to $3.9 billion, while sales of combustibles added 6% to $5.8 billion. Shipment volume grew 2% to 193.1 billion, with oral smoke-free products soaring 22% to 4.6 billion, heated tobacco products up 5% to 35.7 billion, and cigarettes 1% higher to 152.8 billion.
Philip Morris Had ‘Strong Momentum’ Across All Categories, CEO Says
CEO Jacek Olczak said Philip Morris had “strong momentum across all categories,” and that it was confident its “smoke-free transformation and unparalleled brand portfolio will continue to deliver excellent performance and create value” for shareholders.
The company sees full-year adjusted EPS between $7.04 and $7.17, ahead of the Visible Alpha estimate of $7.01.
Shares of Philip Morris International rose 7% to $140.16 after earlier touching a record $146.77. They have added more than 50% of their value over the past year.
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