Core Viewpoint - Philip Morris International Inc. is transitioning towards smoke-free products, significantly increasing their share in sales and gross profit, while projecting continued growth in revenue and earnings per share [1][3][5]. Group 1: Company Performance - In 2025, smoke-free products accounted for 41.5% of total sales and 42.9% of gross profit, indicating a substantial shift towards less harmful alternatives [3][5]. - The company anticipates organic net revenue growth of 5% to 7% for 2026, alongside a currency-neutral adjusted EPS growth of 7.5% to 9.5% [3][5]. Group 2: Market Position - The market capitalization of Philip Morris stands at approximately $284.57 billion, reflecting its significant presence in the tobacco industry [4]. - The stock has shown a daily trading volume of 8,507,399 shares, indicating active investor interest [4]. Group 3: Stock Analysis - Stifel Nicolaus has set a new price target of $200 for Philip Morris, suggesting a potential 9.4% increase from its trading price of $182.81 [2][5]. - The stock has experienced a daily change of $0.81, representing a 0.45% increase, with a trading range between $178.00 and $186.55 [2].

Core Insights - Altria Group, Inc. achieved 7.2% adjusted earnings per share (EPS) growth in the first half of 2025, reaching $2.67 compared to $2.49 in the same period last year, driven by higher adjusted operating companies income, fewer shares outstanding, and a lower adjusted tax rate [1][8] - The company's net revenues decreased by 3.6% year over year to $11.4 billion, primarily due to challenges in the smokeable products segment, but adjusted operating companies income for smokeable products increased by 3.5% [2][8] - Altria repurchased 10.4 million shares in the first half, contributing to EPS growth, and returned over $4 billion to shareholders through buybacks and dividends [3][8] Financial Performance - Adjusted EPS for the second quarter was $1.44, an increase of 8.3% from $1.33 in the second quarter of 2024 [1][8] - Smokeable products' adjusted operating companies income margins improved by 3.5 percentage points to 64.5%, supported by elevated pricing and cost efficiencies [2][8] - The company maintains a forward price-to-earnings ratio of 11.6X, lower than the industry's average of 14.95X [9] Comparative Analysis - Philip Morris International Inc. reported a 20.1% year-over-year increase in adjusted EPS to $1.91, benefiting from strong pricing in heated tobacco and higher volumes in smoke-free products [5] - Turning Point Brands, Inc. saw adjusted EPS rise to 98 cents, up from 89 cents last year, driven by a significant increase in Modern Oral sales [6] Future Outlook - The Zacks Consensus Estimate for Altria's earnings implies year-over-year growth of 5.3% for 2025 and 2.9% for 2026 [10]