Philip Morris Cuts FY23 Earnings View; Lifts Constant Currency Growth Estimate - Update

(RTTNews) - Tobacco company Philip Morris International Inc. (PM), while announcing weak profit and higher revenues in its third quarter, on Thursday trimmed its fiscal 2023 earnings forecast on a reported and adjusted basis.

On a constant currency basis, the forecast now represents a projected increase of 10 percent to 10.5 percent from the prior year, compared to previously projected increase of 8.0 percent to 9.5 percent.

For the year, the company now expects earnings per share on a reported basis in a range of $4.95 to $4.98, compared to previous forecast of $5.19 to $5.28. In 2022, earnings were $5.81 per share.

Adjusted earnings per share is now expected to be $6.05 to $6.08 per share, compared to previous view of $6.13 to $6.22, and last year's $5.98.

Analysts on average expect the company to earn $6.11 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

On an organic basis, net revenue growth is now expected to be around 8 percent, compared to approximately 7.5 percent to 8.5 percent growth projected previously.

Further, the company expects an adjusted operating income margin decline of 50 to 150 basis points on an organic basis, with the decline likely toward the upper end of the range of 150 basis point.

In its third quarter, Philip Morris earnings decreased from last year but beat the Street estimates.

The company's earnings came in at $2.05 billion, or $1.32 per share, lower than last year's $2.09 billion, or $1.34 per share. Adjusted earnings were $1.67 per share for the period. Analysts had expected the company to earn $1.61 per share.

The company's revenue for the quarter rose 13.8 percent to $9.14 billion from $8.03 billion last year.

In pre-market activity on the NYSE, the shares were trading at $92.64, down 0.61 percent.

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