Core Insights - Philip Morris reported $10.14 billion in revenue for Q2 2025, a year-over-year increase of 7.1%, with an EPS of $1.91 compared to $1.59 a year ago, indicating positive growth despite a slight revenue miss against estimates [1] - The company’s revenue fell short of the Zacks Consensus Estimate by 1.12%, while the EPS exceeded the consensus estimate by 3.24% [1] Financial Performance - Shipment Volume for Cigarettes and HTUs totaled 194.06 billion, slightly below the average estimate of 195.25 billion [4] - Shipment Volume for EA, AU & PMI DF was 28.33 billion, surpassing the average estimate of 27.1 billion [4] - Shipment Volume for SSEA, CIS & MEA reached 95.33 billion, close to the average estimate of 95.56 billion [4] - Shipment Volume for Americas was 15.33 billion, below the average estimate of 16.46 billion [4] Geographic Revenue Breakdown - Net Revenues for EA, AU & PMI DF were $1.71 billion, slightly below the average estimate of $1.77 billion, reflecting a year-over-year change of +2.1% [4] - Net Revenues for Europe amounted to $4.23 billion, slightly below the estimated $4.26 billion, with a year-over-year increase of +11% [4] - Net Revenues for SSEA, CIS & MEA were $2.93 billion, matching the average estimate, with a year-over-year change of +5.6% [4] - Net Revenues for Americas were $1.27 billion, below the average estimate of $1.33 billion, showing a year-over-year change of +12.7% [4] Smoke-Free and Combustible Tobacco Revenue - Net Revenues from Smoke-Free Excl. W&H in SSEA, CIS & MEA were $365 million, below the average estimate of $398.54 million, with a year-over-year change of +7.7% [4] - Net Revenues from Smoke-Free Excl. W&H in EA, AU & PMI DF were $1.05 billion, slightly below the estimated $1.07 billion, reflecting a -0.2% change year-over-year [4] - Total Net Revenues from Smoke-Free Excl. W&H were $4.1 billion, below the average estimate of $4.23 billion, with a year-over-year increase of +16.3% [4] - Total Net Revenues from Combustible Tobacco were $5.98 billion, below the average estimate of $6.08 billion, with a year-over-year change of +2.1% [4] Stock Performance - Philip Morris shares have returned -2.4% over the past month, contrasting with the Zacks S&P 500 composite's +5.9% change, indicating underperformance relative to the broader market [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

Financial Data and Key Metrics Changes - The company reported record net revenues of $4 billion from its smoke-free portfolio in Q2 2025, contributing to strong double-digit adjusted diluted EPS growth in both constant currency and dollar terms [6][10] - Q2 shipment volume growth was 1.2%, with organic top-line growth of 6.8%, reaching over $10 billion in quarterly net revenues for the first time [10][11] - Adjusted diluted EPS increased by 20% to $1.91, reflecting strong top-line momentum and positive margin evolution [11][12] Business Line Data and Key Metrics Changes - The smoke-free business saw a 13% growth in shipment volumes, with heated tobacco unit (HTU) shipment volume growing by 9.2% to 38.8 billion units in Q2 [12][16] - ZYN experienced a significant acceleration in U.S. consumer offtake growth, reaching 26% for Q2 and 36% in June [7][35] - E-vapor shipments more than doubled year-on-year, contributing to gross margin expansion [8][16] Market Data and Key Metrics Changes - In Europe, the smoke-free product market is recovering from the characterizing flavor ban, with notable growth in Italy and other markets [7][25] - The U.S. market for ZYN is showing strong recovery, with shipments increasing by 41% year-on-year [36][37] - Combustible net revenues increased by 2.9%, with robust pricing contributing to gross profit growth despite volume declines [17][41] Company Strategy and Development Direction - The company is focused on maximizing the growth of its smoke-free products, particularly IQOS, ZYN, and VIVE, while maintaining a resilient combustible business model [24][48] - Continuous innovation in devices and consumables is a key pillar for growth, with the rollout of Illumi Eye technology and new product variants [25][30] - The company aims to achieve a fifth consecutive year of total volume growth, driven by its smoke-free portfolio [15][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong fundamentals of the business, raising the adjusted diluted EPS full-year forecast to 13% to 15% growth [10][42] - The company anticipates continued strong momentum in smoke-free products, while acknowledging potential challenges in combustible volumes [14][88] - Management highlighted the importance of addressing the illicit trade issue in the EU, which poses a risk to market growth [24][64] Other Important Information - The company achieved over $500 million in gross cost savings year-to-date through efficiency initiatives [20] - The regulatory environment is seen as a key enabler for smoke-free growth, with positive developments in several markets [22][24] - The company is on track to meet its three-year CAGR targets, demonstrating strong financial performance across all categories [46][48] Q&A Session Summary Question: ZYN restocking and future growth expectations - Management acknowledged that restocking was lower than expected but emphasized the strong momentum in ZYN's growth, with June showing 36% consumer offtake growth [53][60] Question: EU tax proposals and updates - Management refrained from elaborating on specific tax proposals, noting that the process is in its early stages and requires further clarity [62][64] Question: IQOS ILUMA U.S. approval timing - Management remains hopeful for a second-half approval but acknowledged the heavy workload at the FDA, which could delay the timeline [71][73] Question: Combustible volume expectations - Management confirmed a target of around a 2% decline in combustible volumes for the year, aligning with long-term trends [77][78] Question: Increase in underlying guidance - Management indicated that the second half is expected to align with previous expectations, despite some phasing and comparison dynamics affecting performance [83][90]

Financial Data and Key Metrics Changes - The company reported record net revenues of $4 billion from its smoke-free portfolio, contributing to strong double-digit adjusted diluted earnings per share growth in both constant currency and dollar terms [6][10]. - Adjusted diluted EPS reached $1.91, reflecting a growth of 20%, with a favorable currency variance impacting the results [11][12]. - Total shipment volumes grew by 2.5% in H1, with organic net revenues increasing by 8.4% [11][12]. Business Line Data and Key Metrics Changes - The smoke-free business saw a 13% growth in shipment volumes, with heated tobacco unit (HTU) shipment volume growing by 9.2% in Q2 [12][15]. - ZYN experienced a significant acceleration in U.S. consumer offtake growth, reaching 26% in Q2 and 36% in June [7][34]. - E-vapor shipments more than doubled year-on-year, contributing to gross margin expansion [8][16]. Market Data and Key Metrics Changes - In Europe, the smoke-free business showed broad-based growth, particularly in Italy, as the impact of the flavor ban receded [7][25]. - The U.S. market for ZYN saw a recovery in offtake growth, with shipments increasing by 41% year-on-year [34][35]. - The international market for nicotine pouches grew by 65%, nearly tripling outside the Nordics [7][27]. Company Strategy and Development Direction - The company aims to maximize the growth of IQOS while expanding the presence of ZYN and VIVE under its multi-category strategy [24][25]. - Continued investment in smoke-free brands is prioritized, with a focus on expanding production capacity and market access [21][23]. - The company is committed to addressing the regulatory environment to support smoke-free growth, particularly in the EU [24][62]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong momentum of smoke-free products continuing into H2, despite expected modest declines in combustible volumes [10][15]. - The company raised its adjusted diluted EPS full-year forecast to a growth range of 13% to 15% [10][42]. - Management acknowledged the challenges posed by the illicit trade and regulatory changes but remains optimistic about the overall growth trajectory [24][46]. Other Important Information - The company achieved over $500 million in gross cost savings year-to-date through efficiency initiatives [21]. - The smoke-free user base grew by approximately 5 million, reaching around 41.5 million as of June 30 [22]. - The company is on track to meet its three-year CAGR targets, demonstrating strong financial growth [46]. Q&A Session Summary Question: Regarding ZYN's restocking and future growth expectations - Management clarified that the restocking was slightly lower than expected, but emphasized the strong momentum in ZYN's growth, with June showing a 36% increase in consumer offtake [52][58]. Question: Update on EU Tobacco Excise Directive proposals - Management noted that the initial proposal includes differentiation between smoke-free and combustible products regarding minimum taxation, but further clarity will be provided as the legislative process unfolds [62][64]. Question: Timing for IQOS ILUMA U.S. approval - Management remains hopeful for a second-half approval but acknowledged the heavy workload at the FDA, which could delay the timeline [70][72]. Question: Drivers of IQOS reacceleration and sustainability - Management highlighted the waning effects of the flavor ban in Europe and strong performance in markets like Japan and global travel retail as key drivers for IQOS growth [72][74]. Question: Combustible volume expectations - Management confirmed a target of around a 2% decline in combustible volumes for the year, aligning with long-term trends [76][78]. Question: Increase in underlying guidance and second-half considerations - Management explained that the second half is expected to maintain strong momentum in smoke-free products, despite anticipated declines in combustibles [81][85].

What's Next for Philip Morris? While Philip Morris has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Philip Morris (PM) came out with quarterly earni ...

Financial Performance - The company experienced strong growth in Q2 2025, with adjusted diluted EPS up by 201%[7] - Adjusted operating income increased by 161%[7] and net revenues grew by 68%[7] - For H1 2025, adjusted diluted EPS increased by 161%[8], adjusted operating income by 145%[8], and net revenues by 65%[8] - The company is raising its 2025 forecast to 13-15% adjusted diluted EPS growth[6] Smoke-Free Products (SFP) - Smoke-free products are driving total volume growth[10], with H1 2025 shipment volume increasing by 131%[10] - Smoke-free net revenues and gross profit showed organic growth of 270%[11] and 154%[11] respectively in H1 2025 - The company's multicategory strategy is catalyzing SFP user growth to over 41 million[17] - IQOS quarterly net revenues are over $3 billion[19] ZYN (Nicotine Pouches) - ZYN nicotine pouch shipment volumes increased by 43%[22] in Q2 2025 compared to the previous year - U S ZYN volumes increased by 41%[22] and international volumes excluding Nordics increased by 179%[22] - The company expects strong H2 offtake growth for ZYN as retail availability normalizes[31] Regional Performance - Europe experienced a 135%[25] growth in IQOS, ZYN & VEEV shipment in Q2 2025 - In Japan, the company's HTU adjusted IMS grew by 78%[26] in Q2 2025, with a 48%[26] HnB offtake category share - The company is seeing excellent IQOS key city progress across global markets[34]

智通财经7月22日电，烟草巨头Philip Morris第二季度调整后运营收益42.5亿美元，预估41.1亿美元；预 计全年调整后每股收益7.43美元至7.56美元。 ...

Philip Morris International Inc. PM will release earnings results for the second quarter before the opening bell on Tuesday, July 22. Analysts expect the Stamford, Connecticut-based company to report quarterly earnings at $1.86 per share, up from $1.59 per share in the year-ago period. Philip Morris is projected to report quarterly revenue of $10.33 billion, compared to $9.47 billion a year earlier, according to data from Benzinga Pro. On June 13, Philip Morris International declared a regular quarterly div ...

Core Viewpoint - Philip Morris International Inc. is expected to report growth in both revenue and earnings for the second quarter of 2025, with earnings anticipated to be released on July 22, before market opening [1]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for revenues is approximately $10.3 billion, reflecting an 8.3% increase from the same quarter last year [2]. - The consensus estimate for quarterly earnings has risen to $1.85 per share, indicating a 16.4% increase compared to the previous year [2]. Earnings Performance and Predictions - Philip Morris has a trailing four-quarter average earnings surprise of 3.6%, with the last quarter's earnings exceeding the Zacks Consensus Estimate by 5% [3]. - The company has an Earnings ESP of -0.04% and a Zacks Rank of 2 (Buy) [4]. Factors Influencing Q2 Earnings - Strong pricing strategies have been a significant driver of revenue and operating income growth, as smokers tend to accept price increases due to the addictive nature of cigarettes [5]. - Smoke-free products contributed to 44% of the gross profit in Q1 2025, highlighting the success of the IQOS ILUMA device and other innovations like ZYN nicotine pouches and VEEV ONE e-vapor [6]. Smoke-Free Product Growth - The Zacks Consensus Estimate for total smoke-free product revenues for Q1 is $4,225.9 million, up from $3,530 million in the previous year [7]. - Management anticipates a 10% growth in IQOS HTU adjusted IMS for Q2, with ZYN shipments expected to maintain levels from Q1 [8]. Earnings Forecast - The company forecasts adjusted earnings between $1.80 and $1.85 for Q2, including a favorable currency impact of 6 cents per share [9][11]. Stock Performance - Philip Morris shares have increased by 9.7% over the past three months, underperforming the Zacks industry growth of 10.2% but lagging behind the S&P 500's 19.5% increase [12]. - Compared to major tobacco players, Philip Morris outperformed Altria but was outpaced by Turning Point Brands and British American Tobacco [13]. Valuation Analysis - Philip Morris is trading at a premium with a forward 12-month price-to-earnings ratio of 22.39X, above the industry average of 15.21X [15]. - Despite the premium valuation, the company's growth profile and strategic transformation make it an attractive option for investors [16].

Core Insights - Philip Morris International is expected to report earnings of $1.86 per share on revenues of $10.33 billion, surpassing last year's earnings of $1.59 per share on sales of $9.47 billion [3] - The company has a market capitalization of $285 billion and generated $38 billion in revenue over the past twelve months, with operating profits of $14 billion and a net income of $7.6 billion [4] Historical Performance - Over the past five years, Philip Morris stock has shown positive one-day returns following earnings reports in 60% of cases, with a median positive return of 3.2% and a maximum return of 10.9% [2][7] - In the last three years, the percentage of positive one-day returns drops slightly to 58% [7] - There have been 20 documented earnings data points in the last five years, with 12 positive and 8 negative one-day returns [7] Return Correlation - The relationship between one-day (1D), five-day (5D), and twenty-one-day (21D) returns can guide trading strategies, with a focus on identifying correlations between short-term and medium-term returns [6][8] - A strategy based on the correlation between 1D and 5D returns can be employed, where a positive 1D return may lead to a long position for the next 5 days [8]

Core Viewpoint - Upgrading Philip Morris (PM) to a buy rating despite a nearly 50% year-to-date increase is seen as a strategic move, contrasting with a previous downgrade to hold in October [1]. Group 1 - The analyst, Manika, has over 20 years of experience in various industries, including investment management and investment banking [1]. - The investment group, Green Growth Giants, focuses on opportunities in the green economy, indicating a broader investment strategy beyond traditional sectors [1].