UPDATE: Philip Morris International (PM) Tops Q1 EPS by 12c, Revenues Beat; Lowers FY19 EPS Guidance Below Consensus
Philip Morris International (NYSE: PM) reported Q1 EPS of $1.09, $0.12 better than the analyst estimate of $0.97. Revenue for the quarter came in at $6.8 billion versus the consensus estimate of $6.74 billion.
- Revises 2019 Full-Year Reported Diluted EPS Forecast to at Least $4.87 versus $5.08 in 2018, Reflecting Currency-Neutral Like-for-Like Adjusted Diluted EPS Growth of at Least 8%
- Reported diluted earnings per share of $0.87, down by $0.13 or 13.0% versus $1.00 in 2018
- Excluding unfavorable currency of $0.06, reported diluted earnings per share down by $0.07 or 7.0% versus $1.00 in 2018 as detailed in the attached Schedule 2
- Adjusted diluted earnings per share of $1.09, up by $0.09 or 9.0% versus $1.00 in 2018
- Excluding unfavorable currency of $0.06, adjusted diluted earnings per share up by $0.15 or 15.0% versus $1.00 in 2018 as detailed in the attached Schedule 2
- Cigarette and heated tobacco unit shipment volume of 175.8 billion units, up by 1.1%, reflecting:
- Flat cigarette shipment volume of 164.3 billion units
- Heated tobacco unit shipment volume of 11.5 billion units, up by 1.9 billion units or 20.2%
- Excluding the net unfavorable impact of estimated distributor inventory movements of approximately 1.0 billion units, PMI's total in-market sales growth was 1.7%, driven by a 34.6% increase in heated tobacco unit in-market sales
- Net revenues of $6.8 billion, down by 2.1%
- Excluding unfavorable currency of $369 million, net revenues up by 3.2% as detailed in the attached Schedule 4
- Operating income of $2.1 billion, down by 15.5%
- Excluding unfavorable currency of $144 million, operating income down by 9.6% as detailed in the attached Schedule 5
- Adjusted operating income, reflecting the items detailed in the attached Schedule 6, of $2.5 billion, up by 3.2%
- Excluding unfavorable currency of $144 million, adjusted operating income up by 9.1% as detailed in the attached Schedule 6
- During the quarter, PMI declared a regular quarterly dividend of $1.14, representing an annualized rate of $4.56 per common share.
"Our first-quarter results represent a promising start to the year, underpinned by a robust performance from our combustible portfolio and strong share growth from our smoke-free products, notably in Japan, Russia and across the EU. Indeed, we achieved an important milestone in the quarter, reaching more than 10 million IQOS users worldwide," said André Calantzopoulos, Chief Executive Officer.
"While our reported results were impacted by previously disclosed charges related to our Canadian subsidiary, on a currency-neutral basis, net revenues, adjusted operating income and adjusted diluted EPS grew by 3.2%, 9.1% and 15.0%, respectively. Adjusted operating income margin, excluding currency, increased by 200 basis points to 37.2%."
"This is an encouraging performance and puts us on track to deliver against our full-year adjusted diluted EPS currency-neutral growth forecast of at least 8% on a like-for-like basis."
GUIDANCE:
Philip Morris International sees FY2019 EPS of $4.87, versus the consensus of $5.09.
For earnings history and earnings-related data on Philip Morris International (PM) click here.