Philip Morris Trims Guidance as Zyn Push Meets War-Driven Costs
PM sits 38% above its 52-week low of $142.11.
Summary
Philip Morris cut full-year adjusted EPS guidance to $8.29-$8.44 from $8.35-$8.50, with reported EPS now $7.11-$7.26, as it pours more money into Zyn and absorbs war-related cost pressure. Q3 adjusted EPS of $2.36 beat the $2.30 consensus and revenue of $11.4B topped the $11.32B estimate, but reported EPS fell to $2.12 from $2.23 a year ago. The Zyn buildout is concrete: U.S. shipments rose 4.2% to 3.2 billion pouches, most of the portfolio moves to 20-pouch cans from 15, and a national brand campaign launches this quarter. Management flagged Middle East energy inflation and strikes on Ukrainian logistics infrastructure as Q3 headwinds expected to worsen in Q4. Shares slipped 1.6% to $196.79 midday, still up nearly 23% year to date.
At the time of this announcement, PM was trading at $196.81 on NYSE in the Manufacturing sector, with a market capitalization of approximately $306.7B. The 52-week trading range was $142.11 to $210.45. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.