Tobacco company Philip Morris International (NYSE: PM) will be reporting results this Tuesday before market hours. Here’s what to expect.
Philip Morris beat analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $9.30 billion, up 5.8% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ gross margin estimates.
Is Philip Morris a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Philip Morris’s revenue to grow 8.6% year on year to $10.28 billion, improving from the 5.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.86 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Philip Morris has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.1% on average.
Looking at Philip Morris’s peers in the consumer staples segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Constellation Brands’s revenues decreased 5.5% year on year, missing analysts’ expectations by 1.5%, and McCormick reported flat revenue, in line with consensus estimates. Constellation Brands traded up 4.5% following the results while McCormick was also up 3.6%.
Read our full analysis of Constellation Brands’s results here and McCormick’s results here.
Investors in the consumer staples segment have had steady hands going into earnings, with share prices up 1.3% on average over the last month. Philip Morris is down 3.1% during the same time and is heading into earnings with an average analyst price target of $184.32 (compared to the current share price of $179.24).
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