Why Is Marlboro Maker Philip Morris Stock Shooting Higher Today?
Portfolio Pulse from Shivani Kumaresan
Philip Morris International Inc (NYSE:PM) reported a 9.7% year-on-year sales growth for Q1 FY24, with revenues of $8.793 billion surpassing analyst estimates. The company's smoke-free business contributed to 39% of total net revenues, with a notable 20.9% growth in Heated Tobacco unit shipments. Adjusted EPS of $1.50 exceeded expectations, and the company saw a slight increase in Marlboro cigarette shipments. Despite cutting its FY24 adjusted EPS outlook, Philip Morris raised its organic revenue growth guidance and saw its shares rise by 2.98% to $96.86.
April 23, 2024 | 2:21 pm
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Philip Morris International Inc reported strong Q1 FY24 results with higher than expected sales and adjusted EPS, leading to a 2.98% increase in stock price to $96.86. The company's focus on smoke-free products is paying off, but it has cut its FY24 EPS outlook.
The positive reaction in Philip Morris' stock price is directly tied to its Q1 performance exceeding analyst expectations, particularly in sales growth and adjusted EPS. The growth in smoke-free product sales and the increase in Marlboro shipments highlight the company's successful strategy shift towards less harmful products. However, the cut in FY24 EPS outlook suggests caution, potentially tempering investor enthusiasm in the short term. The stock's positive movement reflects immediate market reaction to the earnings beat and strategic focus.
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