Cigarette Maker Philip Morris Q2 Earnings Beat Estimates On Strong Business Momentum

Philip Morris International Inc PM reported second-quarter FY23 sales growth of 14.5% year-on-year to $8.97 billion, beating the analyst consensus of $8.65 billion.

Cigarette and Heated Tobacco unit (HTU) shipment volume in Q2 grew by 3.3% Y/Y, reflecting growth of 26.6% for HTUs and a decline of 0.4% for cigarettes.

Swedish Match delivered currency-neutral top-line growth of 19.1% Y/Y.

Marlboro cigarette shipment volume decreased by 2.9% to 60.8 billion units, due primarily to the Philippines.

Revenue from smoke-free products increased 34.1% Y/Y to $3.2 billion.

Adjusted operating margin for the quarter compressed from 41.2% to 39.4%, with $3.5 billion in adjusted operating income.

Adjusted EPS of $1.60 beat the consensus of $1.47.

The company held $3.49 billion in cash and equivalents as of June 30, 2023.

Outlook: Philip Morris revised its FY23 adjusted EPS outlook from $6.10 - $6.22 to $6.13 - $6.22 versus an estimate of $6.21.

It raised FY23 organic revenue growth range to 7.5% - 8.5% from 7% - 8.5%.

Price Action: PM shares are trading higher by 0.03% at $98.80 in premarket on the last check Thursday.