PMI(US:PM) ZACKS·2025-07-07 15:16Core Insights - Philip Morris International Inc. (PM) shares have increased by 20.8% over the past three months, outperforming the Zacks Tobacco industry's growth of 18.8% and the broader Zacks Consumer Staples sector's increase of 8.3%, but lagging behind the S&P 500's rise of 26.4% during the same period [1][3][9] Performance Overview - PM's stock closed at $178.88, which is 4.2% below its 52-week high of $186.69 reached on June 16, 2025 [4] - The company has shown solid upward momentum, trading above its 50-day and 200-day simple moving averages of $175.36 and $143.14, respectively [4][5] - Among major tobacco players, PM outperformed Altria Group Inc. (9.2% increase) but was outpaced by Turning Point Brands (34% increase) and British American Tobacco (24.3% increase) [3] Financial Performance - PM's strong first-quarter performance included an adjusted EPS of $1.69, with double-digit growth in both organic revenues and operating income [9] - The smoke-free product segment contributed 44% of total gross profit, with shipments rising over 14.4% [10] - The company achieved over $180 million in gross cost savings, keeping it on track to meet its $2 billion cost-savings target for 2024-2026 [11] Future Outlook - Management raised its full-year guidance, adjusting the earnings forecast to a range of $7.36 to $7.49, indicating 12% to 14% growth [12] - Continued momentum is expected from the smoke-free business, driven by expanded ZYN capacity and ongoing product innovation [12] Challenges and Risks - Regulatory uncertainty, particularly in international markets, poses a risk to PM's growth, especially with the characterizing flavor ban in Europe affecting product volumes [13] - Currency fluctuations negatively impacted financial results, with a 7-cent unfavorable currency variance on adjusted EPS due to volatility [14][16] - PM's forward 12-month price-to-earnings multiple of 22.6X is above the industry average of 15.27X, indicating potential overvaluation [17]