Tobacco company Philip Morris International (NYSE:PM) will be announcing earnings results tomorrow before market hours. Here’s what to look for.
Philip Morris beat analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $9.91 billion, up 8.4% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.
Is Philip Morris a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Philip Morris’s revenue to grow 4.4% year on year to $9.44 billion, slowing from the 11% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.50 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Philip Morris has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Philip Morris’s peers in the beverages, alcohol, and tobacco segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Altria delivered year-on-year revenue growth of 1.6%, beating analysts’ expectations by 0.6%, and Tilray reported revenues up 8.9%, falling short of estimates by 3.6%. Altria’s stock price was unchanged after the results, while Tilray was down 13.5%.
Read our full analysis of Altria’s results here and Tilray’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the beverages, alcohol, and tobacco stocks have shown solid performance, the group has generally underpeformed, with share prices down 3.8% on average over the last month. Philip Morris is up 7.9% during the same time and is heading into earnings with an average analyst price target of $136.93 (compared to the current share price of $130.93).
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