PMI(US:PM) ZACKSยท2025-02-06 18:46Core Insights - Philip Morris International Inc. (PM) shares increased by 9.4% in pre-market trading following strong fourth-quarter 2024 results, with both revenue and earnings surpassing expectations [1][2][3] Financial Performance - Adjusted earnings per share (EPS) for the fourth quarter reached $1.55, a 14% increase year over year, exceeding the Zacks Consensus Estimate of $1.51 [2] - Net revenues totaled $9,706 million, reflecting a 7.3% increase on a reported and organic basis, surpassing the Zacks Consensus Estimate of $9,362.4 million [3] - The adjusted operating income rose 15.3% to $3,519 million, driven by improved pricing and volume/mix, despite increased marketing and administrative costs [6] Product Performance - Revenues from combustible products grew by 6% due to high single-digit pricing and strong industry volumes [4] - Smoke-free business revenues increased by 9.2%, accounting for 40% of total revenues, with significant contributions from IQOS and ZYN [5] - Total shipment volumes rose by 2.3% to 193.1 billion units in the fourth quarter [5] Regional Performance - European net revenues grew 5.5% organically to $4,056 million, with shipment volumes remaining flat at 53.6 billion units [7] - In the SSEA, CIS & MEA regions, net revenues increased 6.6% to $2,868 million, with a 4.1% rise in shipment volumes [8] - The Americas saw a 21% organic revenue surge to $1,261 million, although shipment volumes dipped by 2% [9] Future Outlook - For 2025, adjusted EPS is projected to be in the range of $7.04-$7.17, indicating a growth of 7.2-9.1% [13] - PM anticipates net revenues to increase by 6-8% on an organic basis and operating income to rise by 10.5-12.5% [15] - The company expects operating cash flow of around $11 billion in 2025, with capital expenditures estimated at nearly $1.5 billion [15]