Tobacco company Philip Morris International (NYSE: PM) will be reporting results this Wednesday before market open. Here’s what to look for.
Philip Morris beat analysts’ revenue expectations last quarter, reporting revenues of $10.15 billion, up 9.1% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS and gross margin estimates.
Is Philip Morris a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Philip Morris’s revenue to grow 4.6% year on year, slowing from the 7.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Philip Morris rarely misses Wall Street’s revenue estimates.
Looking at Philip Morris’s peers in the consumer staples segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Constellation Brands’s revenues decreased 3.3% year on year, beating analysts’ expectations by 1.6%, and WD-40 reported revenues up 24.3%, topping estimates by 12.9%. Constellation Brands traded down 1.6% following the results while WD-40 was up 10.6%.
Read our full analysis of Constellation Brands’s results here and WD-40’s results here.
There has been positive sentiment among investors in the consumer staples segment, with share prices up 6.8% on average over the last month. Philip Morris is up 10.8% during the same time and is heading into earnings with an average analyst price target of $194.86 (compared to the current share price of $191.90).
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