Philip Morris Sees Full-Year Results Below Expectations. Why Investors Might Not Need to Worry.

Hits: 0

Philip Morris provided full-year earnings guidance on Tuesday.

Matt Cardy/Getty Images

Philip Morris International reaffirmed its full-year forecast on Tuesday, but the guidance was below analysts’ expectations. The news didn’t do the stock any favors.

Philip Morris (ticker: PM) said it expects to earn between $5.95 and $6.05 a share on an adjusted basis, which excludes nonrecurring items, for 2021. According to data from FactSet, consensus estimates call for earnings of $6.08 a share.

However, the company warned that its challenge against additional customs duties had been rejected by Saudi Arabia’s Customs Appeals Committee. The decision that could dent full-year results by as much as 18 cents a share on an unadjusted basis.

For the tobacco giant’s coming second-quarter results, the company said it is looking for per-share earnings of $1.50 to $1.55, bracketing the $1.53 average analyst estimate.

Philip Morris was initially trading down early Tuesday, and after flipping between small gains and losses, the stock was off 0.7% at recent check. The shares have jumped around 18% year to date, and are up nearly 30% in the past 12 months.

The company delivered a better-than-expected first quarter in April, helped in part by its heat-not-burn device iQOS, which has been gaining share around the world.

Join Our Free Affiliate Marketing Training Course. This Makes $100-$500 Daily

That said, investors probably shouldn’t be too concerned: Philip Morris has a history of providing relatively conservative guidance. Of course, some shareholders may have been hoping for a more upbeat outlook today, but others may hold out hope that actual earnings will outpace the latest forecast.

Analysts have been increasingly bullish on Philip Morris’s prospects in recent months.

Write to editors@barrons.com

Share:

Author: admin

AffiliateLeakz - Affiliate Marketing Secrets Exposed