Stock in Philip Morris International Inc. (NYSE: PM) rose more than 2% on Monday. Stocks have risen 33% over the past three months. The tobacco company plans to report the results of its performance before the market opens in the first quarter of 2025 on Wednesday, April 23rd. This looks at what you expect from the revenue report.
Revenue
Analysts forecast $9.13 billion in revenue for Philip Morris in the first quarter of 2025. This means growth of more than 3% from the same period last year. In the fourth quarter of 2024, revenues rose 7% year-on-year to $9.7 billion.
Revenue
Philip Morris guides the earnings per share in the first quarter of 2025, within the range of 1.58-1.63. Analysts are forecasting an EPS of $1.61. This is compared to the adjusted EPS of $1.50 reported in the first quarter of 2024.
Things to note
Philip Morris can be expected to benefit from the continued momentum of the smokeless business, which accounted for 40% of total revenue and 42% of total profit for the fourth quarter of 2024. In the last quarter, revenues increased by 9% and gross profit increased by 15%. The company’s non-smoking products are currently available in 95 markets.
The strength of the smoking cessation business is driven by IQOS and Zyn. IQOS continues to gain market share in Japan and Europe, seeing double-digit growth in regions such as Spain and Germany last quarter, but Zyn has increased cargo volume by 42% to 165 million cans. In Q4, PM saw a 13% growth in heated tobacco unit (HTU) adjusted market sales (IMS) volume.
The first quarter PM forecasts HTU’s HTU adjusted IMS growth, along with HTU’s shipments of 3.5-36 billion and US Zyn’s shipments of 180 million cans.
Philip Morris is also expected to benefit from the resilience of the burnable business driven by expensive pricing and the volume growth in markets where smoking bans are not permitted. In the fourth quarter, burning capacity revenues increased by 6% year-on-year, while tobacco shipments increased by 1.1%.
