55.51 -0.32 (-0.57%)
Pre-market: 7:17AM EDT
|Bid||55.00 x 1300|
|Ask||56.44 x 200|
|Day's range||55.02 - 56.01|
|52-week range||54.83 - 77.79|
|PE ratio (TTM)||10.52|
|Forward dividend & yield||2.80 (5.06%)|
|1y target est||N/A|
Altria Group Inc. on Thursday reported earnings that beat analyst expectations. Net income of $1.9 billion was up from $1.4 billion a year ago. Per-share earnings were $1.00, versus 72 cents a year ago. ...
As of April 19, 2018, Philip Morris International (PM) was trading at $85.64. Analysts expect the company’s stock price to reach $109.44 in the next 12 months, which represents a return potential of 27.8%.
Due to its high visibility in Philip Morris International’s (PM) earnings, we have opted for the forward PE (price-to-earnings) multiple. Forward PE multiples are calculated by dividing companies’ current stock prices by analysts’ earnings estimates for the next four quarters.
Philip Morris International (PM) posted adjusted EPS (earnings per share) of $1 in 1Q18, 2.0% higher than its EPS of $0.98 in 1Q17, and higher than analysts’ expectation of $0.90. In 1Q18, the company’s EPS were driven by revenue growth and currency exchange, and partially offset by net margin contraction.
Philip Morris International (PM) had gross, EBIT (earnings before interest, and tax), and net margins of 61.8%, 35.2%, and 22.6%, respectively, in 1Q18, compared with 64.1%, 39.5%, and 26.2%, in 1Q17.
Analysts expect Philip Morris International (PM) to post revenue of $32.5 billion in the next four quarters, 9.8% higher than the $29.6 billion seen in the last four quarters. The growth is expected to be driven by price variance and RRP (reduced-risk product) sales and offset by a decline in cigarette shipment volumes. In 2018, Philip Morris expects pricing variance for combustible tobacco products to be favorable, by 7%. In 2018, its expects RRP revenue to rise 80%–90% from the $3.6 billion seen in 2017 as the company continues to expand product availability.
Philip Morris International (PM) posted revenue of $6.9 billion in 1Q18, missing analysts’ expectation of $7.0 billion. A deacceleration in iQOS sales led to lower-than-expected sales in 1Q18. However, the company’s 1Q18 revenue was 13.7% higher than the $6.1 billion it reported in 1Q17.
Philip Morris International (PM) posted its 1Q18 earnings before the market opened on April 19, 2018. The company reported adjusted EPS (earnings per share) of $1 on revenue of $6.9 billion. The company’s EPS rose 2.0% YoY (year-over-year), while its revenue rose 13.7%.
Some analysts say that a shift toward vaping among pot users could make the marijuana business an opportunity for big tobacco firms like Altria Group and Turning Point Brands.
Weak shipment volumes stemming from declining cigarette sales have long been a hurdle for firms in the tobacco space. However, RRPs are likely to continue expanding.
Zacks Investment Ideas feature highlights: Phillip Morris International, Altria and British American Tobacco
After its stock fell the most in a decade on Thursday, Philip Morris International Inc.’s challenge is to convince baby boomers to switch from cigarette smoking to a distinctly millennial activity -- fiddling ...
Philip Morris International is struggling to persuade people to stop smoking cigarettes. In Japan, the over-50s are still setting fire to cancer-causing sticks like there is no tomorrow. Its shares fell as much as 18 per cent, their worst decline since it split from Altria in 2008.
Weak revenue growth from Philip Morris and concerns about its vape product sent both tobacco stocks lower.
As of April 17, 2018, Altria Group (MO) was trading at $63.97. On March 26, 2018, Deutsche Bank initiated coverage of Altria with a “buy” rating and a target price of $72. Steve Powers of Deutsche Bank pointed out that Altria is trading at an attractive valuation multiple due to the recent decline in its stock.
For our analysis, we’ve used a forward PE (price-to-earnings) multiple due to the high visibility of Altria Group’s (MO) earnings. A forward PE multiple is calculated by dividing the company’s stock price from analysts’ earnings estimate for the next four quarters. The two announcements from the FDA that it’s considering policies to restrict the use of flavors in tobacco products and focusing on developing a comprehensive policy to lower nicotine levels in cigarettes led to declines in Altria stock and valuation multiple.
Analysts are expecting Altria Group (MO) to post adjusted EPS (earnings per share) of $0.92 in 1Q18, which represents a growth of 26% from $0.73 in 1Q17. Growth is expected to be driven by the expansion of Altria’s net margin, share repurchases, and marginal growth in revenue. Analysts are expecting Altria’s net margin to be 37.4% compared to 30.7% in 1Q17.
Analysts are expecting Altria Group (MO) to post revenue of $4.63 billion, which represents a growth of 0.9% from $4.59 billion in 1Q17. Revenue growth is expected to be driven by a rise in product prices. To drive its sales, Altria is focusing on the development of innovative products, packaging innovations, enhanced trade programs, and various marketing and promotional initiatives.