Philip Morris International Inc. (NYE: PM), a leading tobacco company, is set to announce its fourth-quarter and full-year earnings on Thursday, February 9th. The announcement will provide insight into the company’s financial performance and its outlook for the future.
Earnings Preview:
Analysts expect Philip Morris to report earnings per share (EPS) of $1.27, a decrease from the EPS of $1.35 reported in the prior-year quarter. The company’s performance is likely to be supported by the ongoing strength in smoke-free products and stable shipment volume of combustible tobacco offerings. However, the company may face headwinds from supply chain and inflationary cost pressure, including higher costs for direct materials, energy, wages, and transportation.
Analyst Upgrades:
Morgan Stanley analyst Pamela Kaufman increased the price target for PM stock to $118 from $109 ahead of the Q4 results. Kaufman highlighted the benefits of the company’s recent acquisition of Swedish Match, which owns a portfolio of oral nicotine products, as well as the improving foreign exchange movement.
Goldman Sachs analyst Bonnie Herzog upgraded Philip Morris stock to a Buy from Neutral due to a favorable risk/reward ratio. Herzog expects the rapid expansion of IQOS, the company’s smoke-free heated tobacco product, in the U.S. market to support its long-term growth.
Management Outlook:
The continued growth of IQOS and strength in combustibles have led the management to expand its top-line forecasts. Philip Morris targets 2% to 3% growth in its total shipment volumes in 2022 and organic net revenue growth of 6.5% to 8%.
Is Philip morris a good stock to buy
Philip Morris stock is currently a Moderate Buy, with seven Buy recommendations, three Hold recommendations, and one Sell recommendation from analysts. The average price target of $110.27 implies 7.9% upside potential. The stock also has positive signals from hedge fund managers who have bought 401.2K shares, resulting in an Outperform Smart Score of nine.
In conclusion, the Q4 earnings report from Philip Morris International Inc. will provide valuable information on the company’s performance and future outlook. Investors will be paying close attention to the report to gain a better understanding of the company’s growth prospects.
