Shares of Philip Morris International (PM) tumbled 8.17% in pre-market trading on Tuesday following the release of its second-quarter earnings report. The tobacco giant's results revealed a mixed performance, with earnings beating expectations but revenue falling short of analyst estimates.
The company reported Q2 revenue of $10.14 billion, missing the analyst consensus estimate of $10.33 billion. However, adjusted earnings per share came in at $1.91, surpassing the expected $1.86. The revenue miss was partly attributed to a 1.5% decline in cigarette shipment volumes, highlighting the ongoing challenges faced by traditional tobacco products.
Adding to investor concerns, Philip Morris provided weaker-than-expected guidance for the third quarter. The company forecasts Q3 adjusted earnings in the range of $2.08 to $2.13 per share, falling short of the analyst consensus estimate of $2.14. This outlook, combined with the revenue miss, appears to have sparked the significant pre-market sell-off.
Despite the negative market reaction, Philip Morris did raise its full-year adjusted earnings per share forecast to between $7.43 and $7.56, up from the previous range of $7.36 to $7.49. However, this increase was not enough to offset concerns about the company's near-term growth prospects and its ability to navigate the declining cigarette market.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.