Shares of Philip Morris Worldwide Inc. (NYSE: PM) stayed purple on Monday. The inventory has gained 42% over the previous 12 months. The tobacco big is slated to report its fourth quarter 2024 earnings outcomes on Thursday, February 6, earlier than market open. Right here’s a take a look at what to anticipate from the earnings report:
Income
Analysts are projecting revenues of $9.44 billion for Philip Morris in This fall 2024, which represents a development of over 4% from the identical interval a 12 months in the past. Within the third quarter of 2024, revenues elevated 8% year-over-year to $9.9 billion.
Earnings
The consensus estimate for earnings per share in This fall 2024 is $1.50, which compares to adjusted EPS of $1.36 reported in This fall 2023. In Q3 2024, adjusted EPS grew 14% YoY to $1.91.
Factors to notice
Philip Morris continues to see power in its smoke-free enterprise. Within the third quarter, the smoke-free enterprise recorded year-over-year development of 14% in web revenues and 16% in gross revenue, and accounted for 38% of whole revenues and 40% of gross revenue. In Q3, shipments of smoke-free merchandise reached near 40 billion models. This momentum is predicted to proceed within the fourth quarter.
The momentum within the smoke-free enterprise is especially pushed by positive factors from IQOS and ZYN. IQOS holds a robust place, producing over $10 billion in annual web revenues. In Q3, heated tobacco models (HTU) adjusted in-market gross sales (IMS) quantity grew almost 15% YoY, supported by double-digit development in Europe, continued momentum in Japan, and a acquire in traction from international markets. This robust development is predicted to proceed in This fall.
ZYN nicotine pouches proceed to see robust development. In Q3, oral smoke-free merchandise cargo quantity elevated over 22%, pushed by a 41.4% development in ZYN shipments within the US. The launch of ZYN in Greece and Czech Republic has expanded its availability to 30 markets. Though the corporate was going through provide constraints for ZYN, it had anticipated shipments to match client demand sooner or later in the course of the fourth quarter.
The combustibles enterprise can also be performing effectively. In Q3, revenues on this phase elevated 5% YoY, helped by high-single-digit pricing and resilient trade volumes. The acquire in combustibles was pushed primarily by markets the place smoke-free merchandise are but to realize a presence together with the impression of trade efforts on illicit commerce in sure markets.
Philip Morris expects to ship a robust efficiency in This fall, with margin enlargement. It additionally plans to extend its investments in its smoke-free manufacturers, that are anticipated to result in an increase in prices.
