Philip Morris International (PM) Transition Gathers Steam amid Mixed Q2 Results

Philip Morris International Inc. (NYSE:PM) is one of the defensive stocks billionaires are buying amid US trade tariff uncertainty. On July 22, the company delivered mixed second-quarter results. While sales increased 7.1% year over year to $10.14 billion, they fell short of analysts’ estimates of $10.33 billion. Adjusted profit came in at $1.95 per share, beating market estimates of $1.86 per share.

The disappointing sales number came as Philip Morris ramped up its transition from traditional tobacco products to smoking alternatives such as ZYN. During the quarter, the company shipped 190 million ZYN cans, falling short of consensus estimates of 203 million ZYN cans.

Philip Morris International Inc. (NYSE:PM) is trying to position ZYN as a dominant brand much like the Marlboro label. In addition to ZYN, PMI is also experiencing steady growth in its inhalable nicotine products, led by its heated tobacco device, IQOS. It aims to generate two-thirds of net revenues from smoking alternatives by 2030.

Buoyed by its second-quarter results, PMI raised its full-year adjusted profit target to between $7.43 and $7.56, up from the previous guidance of between $7.36 and $7.49.

Philip Morris International Inc. (NYSE:PM) is a leading tobacco company that is actively transitioning towards a smoke-free future. It focuses on developing and commercializing smoke-free alternatives to cigarettes, including heated tobacco products, e-vapor products, and oral smokeless products, with the goal of completely replacing cigarettes.

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Disclosure: None. This article is originally published at Insider Monkey.