Philip Morris International Inc. (PM)’s Results: Earnings Increase while Cigarette Volumes Continues to Suffer

Philip Morris International Inc. (NYSE:PM) came out with its second quarter results, Fox Business News reported. The company’s net income fell from $2.12 billion, or $ 1.30 per share last year, to $1.85 billion or $1.17 per share this year. After adjusting for certain items, the earnings amounted to $1.41 per share beating analysts earning forecast of $1.24 per share. The company’s earnings also took a hit due to an unfavorable currency impact of $0.15 a share, if taken into account the earnings rose 20% from last year.

Philip Morris International Inc. (NYSE:PM)

Analysts on the Street had predicted revenues excluding service tax to be in the tune of $7.52 billion, whereas Philip Morris International Inc. (NYSE:PM) posted a decline of 1.5% in revenues, from $7.92 billion last year to $7.8 billion this year. The company said in a statement that excluding the impact of currency fluctuations the revenue has actually increased by 4.5%.

Due to decline in cigarette consumption from all the major regions except Europe, Philip Morris International Inc. (NYSE:PM) said its cigarette volume fell by 2.7% to 222.8 billion units in the second quarter. The company also highlighted the fact that it is facing difficulties in Asia and price discounts in Australia which will put it at the lower end of its forecast for the second half of the year. In June, Philip Morris International Inc. (NYSE:PM) had reduced its annual forecast from $5.26 the previous year, to a range of $4.87 to $4.97.

Philip Morris International Inc. (NYSE:PM) was spun-off from Altria Group Inc. (NYSE:MO) to sell iconic brands like Marlboro outside the United States, while Altria Group Inc. (NYSE:MO) could focus on domestic sales. With cigarette sales volume continuing to drop in most of the developed countries, Philip Morris International Inc. (NYSE:PM) is looking to increase its presence in the emerging markets.

Disclosure: none

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!