Philip Morris Hits Record High on Q3 Earnings Beat: ETFs in Focus
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 25 2024
0mins
Source: NASDAQ.COM
Strong Financial Performance: Philip Morris International reported a significant recovery in 2024, with a 44% stock surge and robust third-quarter results, including adjusted EPS of $1.91 and net revenues of $9.9 billion, surpassing estimates due to increased demand for smoke-free products.
Future Growth Projections: The company anticipates adjusted EPS growth of 7.3-8.3% for 2024, alongside an expected increase in net revenues and operating income, driven by its focus on smoke-free alternatives like IQOS and ZYN nicotine pouches.
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Analyst Views on PM
Wall Street analysts forecast PM stock price to rise
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 156.240
Low
175.00
Averages
191.95
High
210.00
Current: 156.240
Low
175.00
Averages
191.95
High
210.00
About PM
Philip Morris International Inc. is an international tobacco company. The Company’s product portfolio primarily consists of cigarettes and smoke-free products. Its smoke-free business (SFB) also includes wellness and healthcare products, as well as consumer accessories, such as lighters and matches. The Company’s segments include Europe Region; South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region (SSEA, CIS & MEA); East Asia, Australia & PMI Global Travel Retail (EA, AU & PMI GTR), and Americas Region. The Company's brands include Marlboro, HEETS, IQOS, IQOS ILUMA, TEREA, VEEV and ZYN. Its IQOS smoke-free product brand portfolio includes heated tobacco and nicotine-containing vapor products. Its international cigarette brands are Chesterfield, L&M, and Philip Morris. It also owns a number of local cigarette brands, such as Dji Sam Soe and Sampoerna A in Indonesia, and Fortune and Jackpot in the Philippines.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Earnings Expectations: According to FactSet, the S&P 500 is projected to have a blended growth rate of 12.5% in Q1, with 78% of reporting companies exceeding expectations, providing a positive backdrop for the upcoming earnings season that could further bolster market confidence.
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- Technical Fragility: Despite the market's strong short-term performance, analyst Craig Johnson warns that the rapid transition from oversold to overbought conditions masks underlying macroeconomic risks, urging investors to remain cautious and focus on high-quality investment opportunities.
See More
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- Price Range Analysis: The IWD ETF has a 52-week low of $171.13 and a high of $227.17, with the last trade at $227.11, indicating the ETF is trading near its high, which may influence investor buying decisions.
- Technical Analysis Tool: Comparing the current price to the 200-day moving average provides investors with a technical analysis reference, helping assess whether the current price is overvalued or undervalued, thus impacting short-term trading strategies.
- ETF Unit Trading Mechanism: ETFs trade like stocks, where investors are actually buying and selling 'units' that can be created or destroyed based on demand, affecting the liquidity and price volatility of the underlying assets.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in ETF units focuses on significant inflows (new units created) or outflows (old units destroyed), which directly impacts the ETF's underlying holdings and market performance.
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- Rising Call for Cessation: Nearly three-quarters of Americans believe public health officials should intensify efforts to discourage smoking, particularly addressing misconceptions about non-combustible products, indicating a growing public concern over smoking hazards.
- Increased Industry Pressure: The white paper from Philip Morris International (PM) proposing various cessation strategies has led to a 2% decline in shares of PM, Altria Group (MO), and British American Tobacco (BTI) on Tuesday, reflecting market apprehension regarding the tobacco sector's future.
- Growth in Tobacco Alternatives: While cigarette sales fell by 1.1%, heated tobacco units (HTU) surged by 10.2%, demonstrating PM's successful pivot towards smoke-free products, with nearly $17 billion in revenue from these alternatives in 2025, accounting for 41.5% of total sales.
- Importance of Policy Advocacy: PM stresses that addressing smoking requires timely FDA assessments and authorizations of better alternatives, alongside public education efforts, showcasing the company's proactive stance in promoting public health policies.
See More
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- Price Fluctuation Analysis: IWB's 52-week low is $279.035 and high is $382.34, with the latest trade at $369.41, indicating price volatility near the high point, which may influence investor buying decisions.
- Technical Analysis Tool: Comparing the latest stock price to the 200-day moving average provides valuable insights for investors, aiding in market trend assessment and potential buying opportunities.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding for ETFs helps identify those experiencing significant inflows (new units created) or outflows (old units destroyed), assessing their impact on underlying assets and market sentiment.
See More
Altria Group's High-Yield Dividend and Cannabis Investment
- High-Yield Dividend: Altria Group offers a dividend yield exceeding 6%, providing investors with a steady cash flow, although its reliance on traditional cigarette sales remains high at 87%, indicating challenges in its transformation process.
- Cannabis Investment Status: Altria invested approximately $1.8 billion in Canadian cannabis company Cronos, holding about 41% of its shares, yet this investment is currently valued at only $429 million, reflecting market caution towards the cannabis industry.
- Revenue Trends: While Altria's annual revenue consistently exceeds $20 billion, its net revenue after excise taxes has declined annually since 2021, dropping from $21.1 billion to $20.1 billion, highlighting the long-term decline in the traditional cigarette market.
- Future Strategy: Altria launched its
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- Dividend King Status: With a 56-year streak of increasing dividends and a current yield of 6.39%, Altria remains a favorite among investors, particularly those seeking high-yield opportunities, further solidifying its market position.
- Strategic Transformation: The company has launched its 'Moving Beyond Smoking' strategy, aiming to double revenue from next-generation tobacco products to $5 billion by 2028; despite regulatory challenges and competitive pressures, this transformation indicates a forward-looking approach to future markets.
- Investment in Cannabis Market: Altria invested approximately $1.8 billion in Canadian cannabis company Cronos in 2019, holding a 41% stake; although its current value is only $429 million, the potential for significant returns increases as marijuana legalization progresses.
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