Why This Philip Morris International Inc. (PM) Earnings Report Is Crucial

The other area where Philip Morris earnings could take a hit is in currency impacts. With all of its revenue coming from overseas, Philip Morris suffers when the dollar is strong, as adverse currency exchange rates can produce a substantial hit to its bottom line. Currency impacts tend to even out over time, but not being prepared for short-term fluctuations can result in a nasty surprise for unaware investors.

When Philip Morris International Inc. (NYSE:PM) reports earnings, be sure to watch the status of ongoing regulatory activity around the world, especially Australia. If results are starting to get hurt due to labeling regulation, it could be just the first step toward similar regulations elsewhere — and that could pull the stock further downward in the quarters to come.

The article Why This Philip Morris Earnings Report Is Crucial originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool owns shares of Philip Morris International.

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