PMI(PM) ZACKS·2025-02-03 16:06Core Insights - Philip Morris International Inc. (PM) is expected to report growth in both revenue and earnings for the fourth quarter of 2024, with revenue estimates at 1.51 per share, indicating an 11% increase from the previous year's quarter [2] Revenue Growth Drivers - The company's ability to implement strong pricing strategies has significantly contributed to revenue and operating income growth, as smokers tend to accept price increases due to the addictive nature of cigarettes [3] - Smoke-free products have become a substantial revenue source, accounting for 38% of net revenues in Q3 2024, driven by the success of the IQOS device [4] - Smoke-free product revenues are projected to grow organically by double digits, nearing 3,867 million, up from $3,489 million in the same quarter last year [5] - Cost-saving measures and strategic initiatives are positively impacting the company's margins [5] Currency and Regulatory Challenges - Currency fluctuations have posed challenges, particularly with the Egyptian Pound and Argentine Peso, leading to an anticipated unfavorable currency impact of 40 cents for the full year [6] - Strict government regulations, including mandatory precautionary labels and self-critical advertisements, are also affecting cigarette consumption [6] Earnings Prediction Insights - Current models do not predict a definitive earnings beat for Philip Morris, as it holds a Zacks Rank of 3 and an Earnings ESP of -0.61% [7]