Will Philip Morris (PM) Top Estimates in Q2 Earnings Release?

Core Insights - Philip Morris International Inc. (PM) is expected to report a revenue increase of 1.8% year-over-year for Q2 2024, with estimates at $9.13 billion, while earnings per share are projected to decline by 3.1% to $1.55 [1] Group 1: Revenue and Earnings Expectations - The Zacks Consensus Estimate for PM's revenues is $9.13 billion, indicating a 1.8% increase from the previous year [1] - The consensus estimate for quarterly earnings has decreased by 1.3% in the past 30 days, suggesting a drop of 3.1% from the year-ago quarter [1] Group 2: Strategic Focus and Product Performance - PM is benefiting from a focus on smoke-free products, which accounted for 39% of net revenues in Q1 2024, driven by strong performance in IQOS and ZYN [2] - The company aims to support IQOS's success through continuous innovation and user growth, particularly with the rollout of ILUMA [2] Group 3: Growth Initiatives and Cost Pressures - PM's second priority is to enhance ZYN's growth in the U.S. through strategic investments and capacity expansion [3] - The company faces ongoing cost pressures, particularly in leaf, wages, and other inputs, which may impact profits in Q2 2024 [3] Group 4: Earnings Prediction Model - The Zacks model indicates a potential earnings beat for PM, supported by a positive Earnings ESP of +1.42% and a Zacks Rank of 2 (Buy) [4]