Philip Morris International Outruns Estimates Again

Philip Morris International (NYSE: PM  ) reported earnings on Feb. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Philip Morris International beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased, and GAAP earnings per share increased.

Gross margins expanded, operating margins shrank, and net margins shrank.

Revenue details
Philip Morris International chalked up revenue of $7.67 billion. The eight analysts polled by S&P Capital IQ predicted net sales of $7.38 billion. GAAP sales were 9.0% higher than the prior-year quarter's $7.04 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $1.10. The 14 earnings estimates compiled by S&P Capital IQ averaged $1.09 per share on the same basis. GAAP EPS of $1.08 for Q4 were 13% higher than the prior-year quarter's $0.96 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 64.9%, 40 basis points better than the prior-year quarter. Operating margin was 38.9%, 50 basis points worse than the prior-year quarter. Net margin was 24.6%, 30 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $7.23 billion. On the bottom line, the average EPS estimate is $1.20.

Next year's average estimate for revenue is $32.44 billion. The average EPS estimate is $5.33.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,758 members rating the stock outperform and 57 members rating it underperform. Among 793 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 786 give Philip Morris International a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Philip Morris International is outperform, with an average price target of $76.61.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Philip Morris International. Motley Fool newsletter services have recommended buying shares of Philip Morris International. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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