Philip Morris Beats Earnings: Should You Buy?

By Andrés Cardenal – Jul 21, 2014 at 10:05AM

NYSE: PM

Philip Morris International

Market Cap

$146B

Today's Change

(0.31%) $0.29

Current Price

$94.06

Price as of April 22, 2024, 4:00 p.m. ET

Philip Morris delivered solid financial performance for the second quarter, and the company pays big capital distributions. However, the tobacco industry is exposed to considerable risks in the long term. Should you buy Philip Morris?

Philip Morris (PM 0.31%) delivered better-than-expected sales and earnings for the second quarter, as market-share gains and strong pricing across different geographies allowed the company to deliver solid performance. Besides, big and consistent capital distributions are a big plus for investors in the company. On the other hand, cigarette sales volume are still falling around the world, and that's a major risk factor to consider.

Is it the right time to buy Philip Morris, or are the risks too high at this stage? The following slideshow offers some ideas for investors willing to take a look at Philip Morris and its potential as an investment in the years ahead.

Andrés Cardenal owns shares of Apple. The Motley Fool recommends and owns shares of Apple. We Fools don't 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.