Marlboro-Maker Philip Morris Beats On Q3 Earnings; Tightens FY21 Adjusted EPS View

Philip Morris International Inc PM reported third-quarter FY21 net revenue growth of 9.1% year-on-year to $8.12 billion, versus the analyst consensus of $7.90 billion. Net revenues improved by 7.6% on an organic basis.
Cigarette and heated tobacco unit shipment volume rose by 2.1% Y/Y, with 15% growth in the Middle East & Africa.
Marlboro's cigarette shipment volume increased 5.8%, mainly driven by PMI Duty-Free, Russia, and Turkey, while L&M declined 10.9%.
The heated tobacco shipment rose 23.8% Y/Y, driven by the EU (notably Italy), Eastern Europe (notably Russia), and Japan.
Total international market share for cigarettes fell 0.6 points Y/Y to 24.4%.
The adjusted operating margin for the quarter was 43.7%, with $3.5 billion in adjusted operating income.
Adjusted EPS of $1.58 beat the analyst consensus of $1.55. Adjusted EPS, excluding currency, was $1.54.
The company held $4.5 billion in cash and equivalents as of September 30, 2021.
The company warned of the tight IQOS device supply chain situation to persist into the first half of 2022.
Outlook: Philip Morris sees FY21 adjusted EPS of $6.01 - $6.06 (prior view $5.97 - $6.07) against the consensus of $6.08.
It currently expects organic net revenue growth of 6.5% to 7% (prior range 6% - 7%).
Price action: PM shares are trading higher by 0.05% at $97.5 in premarket on the last check Tuesday.

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