Philip Morris Q1 Results Disappoint: ETFs In Focus

Zacks Investment Research | Apr 24, 2017 02:49AM ET

Shares of Philip Morris International Inc. (NYSE:PM) dropped 3.45% at market close on Thursday, April 21, 2017. The company reported a 13.01% decrease in revenues quarter-over-quarter. Revenues came in at $6.064 billion in the first quarter of 2017compared with $6.971 billion in the fourth quarter of 2016 and $6.083 billion in the year-ago quarter. It failed to beat the Zacks Consensus Estimate on both earnings and sales in the first quarter of 2017 (read: Philip Morris Misses Q1 Earnings and Sales; Stock Down April 20, 2017)

Q1 Performance

Philip Morris reported non-GAAP earnings per share of $0.98, falling short of the Zacks Consensus Estimate of $1.03. Revenues also missed the consensus mark of $6.427 billion. The tobacco company reported operating incomeof$2.4 billion, down 3.1% year-over-year.

Shipment Volume

The company’s total shipment volume was 177.987 billion units, down 9.41% from196.494 billion units in first-quarter 2016. The decline was due to a sharp fall of 11.47% in shipment of cigarettes to 173.552 from 196.041 billion units in the year-ago quarter. However, heated tobacco unit shipments were up to 4.435 billion units from 453 million units in first quarter of 2016.

Outlook

Philip Morris expects its full-year 2017 earnings per share to be in the range of $4.84-$4.99compared with$4.48 in 2016. This forecast represents 9%-12% growth over the 2016 figure, excluding the impact of adverse currency movement of $0.08 for the full year and a tax item in the first quarter of $0.04.

In the current scenario, let’s have a look at the following ETFs that have a relatively high exposure to Philip Morris.

Consumer Staples Select Sector SPDR Fund Zacks Investment Research

Get The News You Want

Read market moving news with a personalized feed of stocks you care about.

Get The App

Written By: Zacks Investment Research

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Show moreShow Less