Philip Morris Doubles Down on Zyn Expansion, Q2 Beats but FY Guidance Cut
PM sits 35% above its 52-week low of $142.11 on light trading volume (0.4× avg).
Summary
Philip Morris reported a strong Q2 beat with adjusted EPS of $2.20 vs. $2.03 consensus and revenue of $11.19B, up 10% YoY. The company is ramping investments in its Zyn nicotine pouch brand to defend market share against lower-priced rivals, shipping new variants in Q2 and planning 1.5mg and 8mg dry pouches for Q3. Zyn shipments rose 1.8% to 2.9B pouches, and smoke-free products now account for 42% of total sales. Despite the beat, full-year adjusted EPS guidance was cut to $8.26-$8.41 from $8.31-$8.46, reflecting increased spending on marketing and distribution. The bumper Q2 numbers cheered Wall Street.
At the time of this announcement, PM was trading at $191.24 on NYSE in the Trade & Services sector, with a market capitalization of approximately $298.1B. The 52-week trading range was $142.11 to $199.78. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.