Philip Morris reports revenue miss

Philip Morris International Inc.
reported second quarter net income totaling $2.17 billion, or $1.39 per share, up from $1.95 billion, or $1.25 per share last year. Adjusted EPS of $1.57 beat the FactSet consensus for $1.55. Revenue of $7.59 billion was up from $6.65 billion last year and below the FactSet consensus for $7.67 billion. The company’s cigarette alternative Iqos had 20.1 million users at the end of the quarter. Cigarette volume was up 3.2% to 156.1 billion units shipped globally. Philip Morris has authorized a new share repurchase program of up to $7 billion, with a target of spending $5 billion to $7 billion over a three-year period that starts in the third quarter. For 2021, Philip Morris is guiding for EPS of $5.76 to $5.86 and adjusted EPS of $5.97 to $6.07. The FactSet consensus is for EPS of $6.08. “The foregoing is underpinned by the assumption that, even in the event of prolonged pandemic-related restrictions, there will not be a return to the depressed consumption levels of the second quarter of 2020,” the company said in a statement. “This assumption is consistent with the less severe impact on consumption levels observed in the second half of 2020 as COVID-19 spread in a number of markets.” Philip Morris stock slipped 0.5% in Tuesday premarket trading, but has gained 18.3% for the year to date. The S&P 500 index
is up 13.4% for 2021 so far.

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