Philip Morris International Inc. (PM), based in Stamford, Connecticut, stands as a global leader in the tobacco industry, driving innovation through science-backed, smoke-free alternatives. Valued at a market cap of $234.4 billion, the company is spearheading a bold transformation toward a future beyond cigarettes.
Philip Morris is scheduled to report its Q1 earnings before the market opens on Wednesday, Apr. 23. Ahead of the event, analysts expect Philip Morris to report a profit of $1.61 per share, up 7.3% from $1.50 per share reported in the year-ago quarter.
The company has consistently surpassed the consensus estimates in each of the last four quarters. In the previous quarter, the company reported an EPS of $1.55, which smashed the consensus estimates by 2.7%, thanks to strong momentum in its smoke-free product segment, particularly the continued growth of IQOS and ZYN, along with resilient pricing across key international markets.
For fiscal 2025, analysts expect Philip Morris to report an adjusted EPS of $7.14, up 8.7% from $6.57 in fiscal 2024. Looking ahead to fiscal 2026, its adjusted EPS is expected to grow 10.5% year over year to $7.89.
Philip Morris' shares have delivered solid returns, soaring 69% over the past 52 weeks, substantially outpacing the S&P 500 Index's ($SPX) 2.7% decline and the Consumer Staples Select Sector SPDR Fund’s (XLP) 4.3% gains during the same period.
Philip Morris has substantially outpaced the broader market over the past year, fueled by solid demand, strong financial performance, and strategic expansion into smoke-free products. Additionally, its defensive nature and positive analyst sentiment have further supported the stock’s outperformance.
On Feb. 6, Philip Morris released its Q4 earnings, and its shares jumped 11%. It reported net revenues of $9.7 billion in the previous quarter, reflecting a 7.3% year-over-year increase. Notably, revenue from its smoke-free products grew 9.2%, now accounting for 40% of the company’s total top line, a clear sign of its accelerating shift away from traditional tobacco.
The consensus opinion on the PM stock is cautiously bullish, with an overall “Moderate Buy” rating. Out of the 12 analysts covering the stock, eight recommend a “Strong Buy,” one suggests a “Moderate Buy,” two advise a “Hold,” and one gives a “Strong Sell” rating.
The mean price target of $151.60 suggests a marginal upside from current price levels.
