Philip Morris International Raises 2024 Earnings Outlook, Expects Growth Despite Currency Impact

Zinger Key Points
  • For FY24, Philip Morris sees adjusted EPS of $6.26 to $6.38 versus the analyst consensus estimate of $6.30.
  • Philip Morris had projected net financing costs of approximately $1.3 billion to $1.4 billion for FY24.

Philip Morris International Inc PM revised its 2024 full-year for currency-only earnings per share forecast on Tuesday.

For currency only, the company projects reported earnings per share of $5.77 to $5.89 (prior view: $5.70 to $5.82) at prevailing exchange rates. 

Excluding a total 2024 adjustment of 49 cents per share, the forecast range for adjusted diluted earnings per share is $6.26 to $6.38 versus the analyst consensus estimate of $6.30 (prior view: $6.19 to $6.31). The metric represents a projected increase of 4.2% to 6.2% versus $6.01 earnings per share in 2023.

Excluding an adverse currency impact, at prevailing exchange rates, of $0.29 per share, this continues to represent growth of 9% to 11%.

However, other company assumptions that were announced while reporting first-quarter results remain the same.

For FY24, the company sees net revenue growth of 7% to 8.5% on an organic basis, with organic operating income growth of 10% to 12%.

Philip Morris had projected net financing costs of approximately $1.3 billion to $1.4 billion for FY24, with an effective tax rate of 21% to 22%. This excludes discrete tax events.

For full-year 2025 through 2028, Philip Morris estimates an annual impact of approximately $555 million on a pre-tax basis.

Overall, the company said it continues to expect strong first-half results. As announced in its April 23 earnings release, the company expects second-quarter adjusted EPS of $1.50 to $1.55 versus $1.56 estimate, including an estimated adverse currency impact of 14 cents at prevailing exchange rates.

Price Action: PM shares are trading higher by 0.48% to $103.45 at last check Tuesday.

Read Next: Chewy Impresses With Strong Q1 Results; Analysts Envision Stabilized Customer Growth And Enhanced Profitability Ahead

Market News and Data brought to you by Benzinga APIs
Posted In: EquitiesNewsGuidanceMarketsMoversGeneralBriefsStories That Matterwhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!