Philip Morris Beats Expectations in Q2: ETFs in Focus

Core Viewpoint - Philip Morris International (PM) reported strong second-quarter 2024 results, with both top and bottom lines exceeding Zacks Consensus Estimates, driven by robust pricing and success in its smoke-free business, particularly IQOS and ZYN [1][2]. Group 1: Q2 Performance - Adjusted earnings per share (EPS) for Q2 2024 were $1.59, a decrease of 0.6$1.55. Excluding currency effects, adjusted EPS increased by 10.6% year over year to $1.77 [2]. - Net revenues reached$9.47 billion, reflecting a 5.6% increase on a reported basis and a 9.6% increase on an organic basis, surpassing the Zacks Consensus Estimate of $9.16 billion by 3.38$3.44 billion, marking a significant organic increase of 46.6% compared to the previous year [2]. - Total cigarette volumes grew by 2.8% year over year to 197.3 billion units, driven by a 13.1% increase in heated tobacco unit (HTU) shipments and a 20% rise in oral smoke-free products across all regions [2]. Group 2: Smoke-Free Business - The smoke-free business accounted for 38.1% of PM's total net revenues, indicating the company's commitment to transitioning into a smoke-free enterprise. The smoke-free business experienced year-over-year organic growth of 18.3%, with gross profits increasing by 22.2% organically [3]. Group 3: Guidance - For 2024, PM anticipates adjusted EPS in the range of $6.33 to$6.45, compared to $6.01 in 2023. Excluding currency movements, adjusted EPS is projected to be between$6.67 and $6.79, indicating an 11-13% growth from the previous year [4]. - The company expects net revenues to grow by 7.5-9% on an organic basis and anticipates an 11-13% organic growth in operating income for 2024 [4].