Philip Morris International Earnings: Rising Revenue Helps Margins Expand, Profit Rises

Philip Morris International (NYSE: PM) reported a rise in net income in the second quarter, topping Wall Street's expectations. To gain insight into why the company reported as it did, investors might review the company's industry, financials, and commentary.

Earnings and Revenue:
The company reported EPS of adjusted net income of $1.34/share versus the $1.21/share estimate and revenues of $20.23 billion versus the $7.8 billion estimate. Philip Morris International managed to exceed Wall Street estimates with stronger-than-expected EPS and revenues. EPS rose 26.2% while revenue climbed 16.4% from the same period last year.

The company has now seen three quarters in a row of rising net income. Philip Morris' revenue has increased the past four quarters on a year-over-year basis.

Income:
For the year, Philip Morris International reported net income of $4.41 per share. The company trumped analyst projections of $4.15 by 6.3%. According to the reported number, the company's income rose 21.5% from last year's levels.

Official Comment:
"Our strong second-quarter results are testament to our continued growth momentum, particularly in Asia, strong pricing in numerous key markets and our excellent executional capability, as exemplified by our performance in Japan," said Louis C. Camilleri, Chairman and Chief Executive Officer. "Our progress is such that we are again raising our EPS guidance for 2011, reflecting our confidence in the future."

Industry:
Philip Morris International's industry, tobacco, is currently reporting price/earnings growth of 1.6%. The company's EPS lags behind the industry average by 66.1%.

What to Do Next:
Now that you've gotten a round up of Philip Morris International's latest numbers, you can make a better-informed decision about whether to buy, sell or hold those shares. Whatever you do, be sure to visit us before the company's next earnings release for a full preview.

• To see up-to-date news on Philip Morris International, click here
• To see other trading ideas, click here
• To see other company earnings recaps, click here