Philip Morris International (PM) stock tumbled 5.25% in pre-market trading on Tuesday, following the release of its second-quarter earnings report and forward guidance. Despite beating earnings expectations, the tobacco giant's revenue miss and cautious outlook for the third quarter appear to have spooked investors.
The company reported adjusted earnings per share of $1.91 for Q2, surpassing the analyst consensus estimate of $1.86. This represents a 20.13% increase from the same period last year. However, Philip Morris fell short on the top line, with quarterly sales of $10.14 billion missing the expected $10.32 billion, though still showing a 7.10% year-over-year increase.
Adding to investor concerns, Philip Morris provided third-quarter earnings guidance that fell below Wall Street expectations. The company forecasts Q3 adjusted earnings of $2.08 to $2.13 per share, compared to the analyst consensus of $2.14. This outlook, combined with the revenue miss, suggests potential headwinds for the company's growth in the near term. The pre-market plunge reflects investor disappointment and uncertainty about Philip Morris's ability to maintain its growth trajectory in an increasingly challenging market environment.
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