Philip Morris International (NYSE: PM) reported Q1 EPS of $1.57, $0.17 better than the analyst estimate of $1.40. Revenue for the quarter came in at $7.59 billion versus the consensus estimate of $7.27 billion.

2021 FIRST-QUARTER HIGHLIGHTS

• Reported diluted EPS of $1.55, up by 32.5%; up by 23.9%, excluding currency
• Adjusted diluted EPS of $1.57, up by 29.8%; up by 21.5% on an organic basis
• Cigarette and heated tobacco unit shipment volume down by 3.7% (reflecting cigarette shipment volume down by 7.3%, and heated tobacco unit shipment volume up by 29.9% to 21.7 billion units)
• Market share for heated tobacco units in IQOS markets, excluding the U.S., up by 1.7 points to 7.6%
• Net revenues up by 6.0%; up by 2.9% on an organic basis
• Net revenues from smoke-free products accounted for 28.0% of total net revenues
• Operating income up by 23.5%; up by 16.8%, excluding currency
• Adjusted operating income up by 18.5% on an organic basis
• Adjusted operating income margin of 46.0%, up by 5.9 points on an organic basis
• Total IQOS users at quarter-end estimated at approximately 19.1 million, of which approximately 14.0 million have switched to IQOS and stopped smoking
• During the quarter, PMI declared a regular quarterly dividend of $1.20 per common share, representing an annualized rate of $4.80

"We are pleased to have delivered a very strong start to the year, with top- and bottom-line results coming in well ahead of our expectations for the first quarter despite the ongoing challenges of the pandemic," said André Calantzopoulos, Chief Executive Officer.

"This performance was driven by the continued strength of IQOS, in particular, reflecting excellent user, volume and market share momentum, as well as further progress with manufacturing and operating cost efficiencies. Our results also benefited from the timing of specific factors, notably associated with shipments in certain markets and the phasing of commercial investments, which are expected to partially reverse in the second quarter."

"While the speed and shape of the global recovery from the pandemic remains uncertain, we are raising our full-year outlook, on an underlying basis, to reflect the strong results and positive momentum of the first quarter. Our guidance now represents organic adjusted diluted EPS growth of 11% to 13%, reflecting net revenue growth of 5% to 7% on the same basis."

GUIDANCE:

Philip Morris International sees FY2021 EPS of $5.95-$6.05, versus the consensus of $5.95.

PMI revises its full-year reported diluted EPS forecast to a range of $5.93 to $6.03, at prevailing exchange rates, representing a projected increase of around 15% to 17% versus reported diluted EPS of $5.16 in 2020. This compares to the previously communicated forecast range of $5.90 to $6.00, provided on February 10, 2021.

On an organic basis, this forecast represents a projected increase of around 11% to 13% versus adjusted diluted EPS of $5.17 in 2020, as outlined in the table above.

The revised full-year guidance reflects:

• Better underlying business performance driven by the strength of IQOS, particularly in the EU Region and Japan;
• A favorable currency impact, at prevailing exchange rates, of approximately $0.20 per share, compared to approximately $0.25 per share previously; and
• Asset impairment and exit costs of $0.02 per share resulting from product distribution restructuring in Korea and organizational design optimization.

For earnings history and earnings-related data on Philip Morris International (PM) click here.