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Philip Morris International Increases Sales but Misses Estimates on Earnings

By Seth Jayson - Updated Apr 10, 2017 at 1:46PM

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Just the facts, Fool.

Philip Morris International (NYSE: PM) reported earnings on April 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Philip Morris International met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded slightly. Non-GAAP earnings per share grew slightly. GAAP earnings per share grew slightly.

Gross margins were steady, operating margins shrank, net margins dropped.

Revenue details
Philip Morris International tallied revenue of $7.58 billion. The nine analysts polled by S&P Capital IQ expected to see a top line of $7.52 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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

EPS details
EPS came in at $1.29. The 15 earnings estimates compiled by S&P Capital IQ anticipated $1.35 per share. Non-GAAP EPS of $1.29 for Q1 were 1.6% higher than the prior-year quarter's $1.27 per share. GAAP EPS of $1.28 for Q1 were 2.4% higher than the prior-year quarter's $1.25 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 67.2%, much about the same as the prior-year quarter. Operating margin was 44.7%, 110 basis points worse than the prior-year quarter. Net margin was 28.0%, 100 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $8.30 billion. On the bottom line, the average EPS estimate is $1.45.

Next year's average estimate for revenue is $32.28 billion. The average EPS estimate is $5.64.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,886 members out of 2,948 rating the stock outperform, and 62 members rating it underperform. Among 813 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 802 give Philip Morris International a green thumbs-up, and 11 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 $96.67.

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Philip Morris International Inc. Stock Quote
Philip Morris International Inc.
PM
$89.89 (-0.57%) $0.52

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