Core Viewpoint - Philip Morris reported strong Q3 2024 earnings, with adjusted EPS of $1.91, a 14.4% year-over-year increase, exceeding estimates. The company anticipates continued growth in 2024, driven by pricing and volume improvements in both combustible and smoke-free products [2][12]. Financial Performance - Adjusted EPS for Q3 2024 was $1.91, up 14.4% year-over-year, and 18% excluding currency effects, beating the Zacks Consensus Estimate of $1.83 [2] - Net revenues reached $9,911 million, an increase of 8.4% on a reported basis and 11.6% organically, surpassing the Zacks Consensus Estimate of $9,571 million [2][3] - Adjusted operating income rose 11.2% to $4,153 million, with an adjusted operating margin of 41.9%, up 1.1 percentage points [5] Product Segmentation - Revenues from combustible products increased 5.2%, while smoke-free business revenues grew 14.2%, accounting for 38% of total revenues [4] - Total shipment volumes increased 2.9% to 203 billion units in Q3, with notable growth in smoke-free product volumes driven by IQOS and ZYN [4] Regional Performance - European region net revenues grew 8.7% organically to $4,121 million, with total shipment volumes increasing 2.5% [6] - SSEA, CIS & MEA regions saw a 12.1% organic revenue increase to $2,964 million, with shipment volumes rising 3.2% [6] - Americas region revenues surged 30.5% organically to $1,148 million, despite a 1.1% decline in total shipment volumes [7] Strategic Developments - Philip Morris announced the sale of its subsidiary Vectura Group Ltd. to Molex Asia Holdings Ltd., expected to conclude by the end of 2024 [8] - The company raised its quarterly dividend by 3.8% to $1.35 per share but will not engage in share repurchases in 2024 [11] Future Outlook - For 2024, adjusted EPS is projected in the range of $6.45-$6.51, indicating 7.3-8.3% growth, with net revenues expected to increase 9.5% organically [12][14] - Management anticipates operating cash flow of around $11 billion and capital expenditures of $1.4 billion, including investments in ZYN [14] - The total international industry volume for cigarettes and HTUs is expected to grow up to 1% in 2024, with Philip Morris projecting a 2-3% rise in its shipment volumes [13]

Core Viewpoint - Philip Morris International Inc. has experienced a significant stock surge of 30.1% over the past six months, driven by its successful transition to the smoke-free market amid increasing health awareness and stricter anti-smoking regulations [1][2]. Group 1: Stock Performance - Philip Morris' stock performance has outpaced its peers, including Altria Group and British American Tobacco, which saw gains of 20.9% and 17.9%, respectively [2]. - The company's stock is currently trading at $130.39, approaching its 52-week high of $134.15, indicating strong upward momentum and positive market sentiment [5]. - Philip Morris has surpassed the Zacks Consumer Staples sector, which declined by 2.6%, and the S&P 500, which grew by 11% during the same period [2]. Group 2: Business Transformation - The smoke-free products segment has shown exceptional performance, with net revenues increasing by 16.8% organically and gross profit rising by 20.2% in Q3 2024 [8][9]. - The IQOS brand, a leading heat-not-burn device, generated over $10 billion in annual net revenues and is expanding globally, particularly in key markets like Japan and Europe [10]. - Philip Morris aims to have its smoke-free products available in 100 markets by 2025, currently reaching 92 markets [11]. Group 3: Financial Performance and Projections - The company has implemented cost-saving measures, achieving cumulative gross cost efficiencies of $490 million year-to-date, with a target of $2 billion in savings by 2026 [13]. - For 2024, Philip Morris expects net revenues to increase by 9.5% on an organic basis, with adjusted earnings per share projected to range between $6.45 and $6.51, reflecting a growth of 7.3% to 8.3% [14][15]. - Analysts have positively revised their earnings estimates, with the consensus for the current fiscal year set at $6.51 per share [16]. Group 4: Market Challenges - Philip Morris faces challenges such as regulatory pressures in markets where traditional tobacco products are still prevalent, which could hinder the growth of its smoke-free products [21]. - Currency volatility has negatively impacted the company's quarterly adjusted EPS and is projected to have a full-year adverse impact [22]. - The current market valuation of Philip Morris is higher than its industry peers, with a forward price-to-sales ratio of 5.09 compared to the industry average of 3.99, indicating potential overvaluation concerns [20].

This company is making all the right moves and running laps around the competition.Investors love dividends for their durability and stability during volatile markets. As anyone who has paid attention to the last five years is aware, we have seen quite volatile markets (both upward and downward). Steady dividend payments can help you weather the volatility storm.But what's an investor to do when the S&P 500 only pays an average dividend that yields 1.32%? That is not much annual income and significantly wor ...

Betting on dividend growth can lead to strong returns over the long haul. Billionaire Stan Druckenmiller called the Nvidia bull run over the last few years. The retired hedge fund manager made a big bet on artificial intelligence (AI), and it paid off handsomely for his portfolio. Now, he has purchased shares of a company in an entirely different sector: Philip Morris International (PM -0.06%). The largest tobacco company by market cap in the world now makes up over 3% of Druckenmiller's portfolio, and that ...

As November gets underway, Schaeffer's Senior Quantitative Analyst Rocky White compiled a list of the 25 worst S&P 500 (SPX) stocks to own this month, with data going back 10 years. Notably, the catalogue is topped by three oil stocks, though there are plenty of other names worth mentioning. Tobacco name Philip Morris International Inc (NYSE:PM) is sixth on the list, finishing the month lower six times in the last decade. The stock averaged a loss of 0.3% during this time, so those hoping for PM to break ou ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles. Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within th ...

I am a 35-year stock market investor, MBA, and retired reporter and editor for the San Francisco Chronicle. I also was a featured investor with the investment app Netvest. My primary style is a mix of growth and income, with attention to special situations.Analyst’s Disclosure: I/we have a beneficial long position in the shares of PM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than ...

Shares of Philip Morris International (NYSE: PM ) hit a new all-time high last week after the tobacco company submitted a better than expected earnings report card for the third-quarter. The tobacco firm presented a strong outlook for the full-year as well Analyst's Disclosure: I/we have a beneficial long position in the shares of MO, BTI, PM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (o ...

This tobacco stock keeps going up. Stanley Druckenmiller is one of the greatest investors of all time. As the manager of Duquesne Capital Management for nearly three decades, from 1981 to 2010, he generated an average annual return of 30% and never had a losing year. Druckenmiller also worked closely with George Soros, helping to "break the Bank of England" through a massive short bet on the pound in 1992. These days, Druckenmiller is retired as a hedge fund manager, but he still manages his own money throu ...