Philip Morris to Record $500M Impairment on Canada Affiliate, Lowers EPS Guidance
PM sits 21% above its 52-week low of $142.11.
Summary
Philip Morris International will record a $500 million impairment charge in Q2 related to its Canadian affiliate, Rothmans Benson & Hedges. This charge will reduce reported earnings by 33 cents per share and has led the company to lower its full-year reported EPS guidance to $7.18-$7.33 from $7.56-$7.71. Adjusted EPS guidance was also lowered slightly to $8.31-$8.46 from $8.36-$8.51. The impairment reflects updated financial projections for the affiliate, which was part of a C$32.5 billion lawsuit settlement last year.
At the time of this announcement, PM was trading at $171.99 on NYSE in the Trade & Services sector, with a market capitalization of approximately $269.1B. The 52-week trading range was $142.11 to $193.05. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.