ZACKSยท2025-08-05 14:36Core Insights - Philip Morris International (PM) has seen significant growth in its e-vapor brand VEEV, with shipment volumes more than doubling year over year in Q2 2025, reaching nearly 1.5 billion equivalent units in the first half of 2025, positioning VEEV as a key growth driver alongside IQOS and ZYN [1][9] Group 1: VEEV Brand Performance - VEEV is leading the closed pod market in six European countries, including Italy and Greece, driven by a profitability-focused rollout strategy that enhances consumer loyalty and repeat purchase rates [2][9] - The recent launch of VEEV inPRIME in the Czech Republic aims to improve user experience with enhanced flavor, larger vapor clouds, and extended battery life, reinforcing VEEV's premium positioning [3][9] - Early traction for VEEV in markets outside Europe, such as Indonesia, Canada, and Colombia, indicates its global growth potential, supported by PM's multi-category infrastructure [4][5] Group 2: Competitive Landscape - Altria Group is revamping its NJOY product line to re-enter the e-vapor market but faces regulatory challenges and patent litigation that may hinder its progress [6] - Turning Point Brands reported nearly 10x year-over-year growth in white nicotine pouch sales, generating $22.3 million in revenues in Q1 2025, and raised its full-year sales guidance to $80-$95 million, reflecting strong consumer demand [7] Group 3: Financial Performance and Estimates - PM's shares have declined by 10% in the past month, contrasting with the industry's decline of 2.9% [8] - PM's forward price-to-earnings ratio stands at 20.3X, higher than the industry's average of 14.7X [10] - The Zacks Consensus Estimate indicates year-over-year earnings growth of 14% for 2025 and 12% for 2026, with current estimates for 2025 earnings at $7.49 per share [11][12]