Advanced Micro Devices, Inc. (AMD) & Three Earnings Reports That Caught My Attention Last Week

Philip Morris International
Philip Morris International’s first-quarter report is proof that even a tobacco company that services nearly every country around the globe can have a snafu arise once in a while.

For the quarter, Philip Morris, known best for its premium Marlboro brand, reported an adjusted profit of $1.29 as revenue inched higher by nearly 2% to $7.58 billion. Unfortunately, underground cigarette trading in parts of southeastern Asia and the Philippines took its toll as cigarette volume declined sharply, by 6.5%. Philip Morris’ saving grace is its amazing pricing power, which helped push revenue higher despite the shipping volume retracement.

Some might see this action as all the more reason to hunker down at home with Altria Group Inc (NYSE:MO), which commands nearly half of all premium brand market share in the U.S. and has one of the safest-yielding dividends imaginable. However, I contend that the U.S.’ antismoking regulations are too strict and poised to get even stricter as the years progress. Furthermore, President Obama’s 2014 budget proposes a 93% federal government tax increase per pack to $1.95 from $1.01. In my opinion, the geographic diversification of Philip Morris will trump the domestic concerns Altria will face in the coming decade any day of the week!

The article 3 Earnings Reports That Caught My Attention Last Week originally appeared on Fool.com.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool owns shares of Intel, Microsoft, and Philip Morris International. The Motley Fool recommends Intel.

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