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.
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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.
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