Philip Morris International (NYSE:PM) Hits New 1-Year High Following Strong Earnings

Key Points

• Philip Morris International shares hit a new 52-week high after the company reported stronger-than-expected quarterly results, with adjusted EPS of $2.20 versus $2.05 expected and revenue of $11.19 billion versus $10.60 billion forecast.
• Growth was driven by smoke-free products like Zyn, which continued to see strong demand and support the company’s shift away from traditional cigarettes.
• Despite the beat, management trimmed full-year guidance amid currency headwinds and higher conflict-related costs, though analysts still view the stock favorably with a Moderate Buy consensus.

Philip Morris International Inc. (NYSE:PM - Get Free Report) shares hit a new 52-week high during trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $199.78 and last traded at $194.6740, with a volume of 7797800 shares. The stock had previously closed at $188.04.

The company reported $2.20 earnings per share for the quarter, topping analysts' consensus estimates of $2.05 by $0.15. The business had revenue of $11.19 billion for the quarter, compared to analysts' expectations of $10.60 billion. Philip Morris International had a negative return on equity of 142.02% and a net margin of 11.61%.The business's quarterly revenue was up 10.4% on a year-over-year basis. During the same period in the prior year, the firm earned $1.89 EPS. Philip Morris International has set its Q3 2026 guidance at 2.200-2.25 EPS.

Philip Morris International Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, July 20th. Shareholders of record on Thursday, June 25th were given a $1.47 dividend. The ex-dividend date of this dividend was Thursday, June 25th. This represents a $5.88 annualized dividend and a yield of 3.0%. Philip Morris International's dividend payout ratio (DPR) is currently 82.70%.

Philip Morris International News Summary

Here are the key news stories impacting Philip Morris International this week:

• Positive Sentiment: Philip Morris posted Q2 adjusted EPS of $2.20, topping estimates, while revenue of $11.19 billion also exceeded forecasts on strong smoke-free product sales and international growth.
• Positive Sentiment: Zyn and other smoke-free products continued to show strong demand, reinforcing the company’s transition away from traditional cigarettes. Reuters: Philip Morris beats second-quarter sales estimates
• Positive Sentiment: Management signaled confidence in the company’s long-term smoke-free strategy and said it plans to increase investment in the U.S. market. TipRanks: Philip Morris International Signals Confident Smoke-Free Future
• Neutral Sentiment: The company raised spending on Zyn, which could support growth, but also implies higher near-term investment needs. Yahoo Finance: Philip Morris Stock Rises as Earnings Highlight Nicotine Pouch Rebound
• Negative Sentiment: Philip Morris lowered its full-year EPS outlook, which may limit enthusiasm despite the strong quarter. Barrons: Philip Morris Stock Falls After It Cuts Guidance, but There Is One Bright Spot
• Negative Sentiment: Currency headwinds and conflict-related costs in the Middle East pressured the company’s profit forecast. Financial Post: Philip Morris Trims Forecast on Currencies, Iran War Costs

Wall Street Analysts Forecast Growth

PM has been the subject of several recent research reports. Bank of America restated a "buy" rating on shares of Philip Morris International in a research report on Thursday, May 21st. UBS Group lifted their price objective on shares of Philip Morris International from $168.00 to $182.00 and gave the company a "neutral" rating in a research report on Thursday, July 2nd. Stifel Nicolaus reduced their target price on shares of Philip Morris International from $200.00 to $195.00 and set a "buy" rating for the company in a research note on Friday, April 10th. Needham & Company LLC reissued a "buy" rating and set a $200.00 target price on shares of Philip Morris International in a research note on Thursday, April 23rd. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Philip Morris International in a research report on Wednesday, May 20th. Eleven investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, Philip Morris International has a consensus rating of "Moderate Buy" and an average price target of $197.00.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of PM. Oldfield Partners LLP increased its holdings in shares of Philip Morris International by 3.7% during the second quarter. Oldfield Partners LLP now owns 2,800 shares of the company's stock valued at $507,000 after purchasing an additional 100 shares during the period. Regent Peak Wealth Advisors LLC lifted its holdings in Philip Morris International by 5.1% in the second quarter. Regent Peak Wealth Advisors LLC now owns 2,697 shares of the company's stock worth $488,000 after purchasing an additional 132 shares during the period. Annex Advisory Services LLC lifted its holdings in Philip Morris International by 150.8% in the second quarter. Annex Advisory Services LLC now owns 256,496 shares of the company's stock worth $46,403,000 after purchasing an additional 154,235 shares during the period. JFS Wealth Advisors LLC grew its position in Philip Morris International by 1.5% in the 2nd quarter. JFS Wealth Advisors LLC now owns 4,455 shares of the company's stock valued at $806,000 after buying an additional 66 shares in the last quarter. Finally, Tema ETFs LLC increased its stake in Philip Morris International by 10.3% during the 2nd quarter. Tema ETFs LLC now owns 31,005 shares of the company's stock valued at $5,609,000 after buying an additional 2,900 shares during the period. Institutional investors own 78.63% of the company's stock.

Philip Morris International Stock Performance

The stock has a market cap of $303.41 billion, a price-to-earnings ratio of 27.38, a PEG ratio of 2.22 and a beta of 0.38. The company's 50 day simple moving average is $182.74 and its 200 day simple moving average is $175.12.

Philip Morris International Company Profile

Philip Morris International Inc NYSE: PM is a global tobacco company that manufactures and sells cigarettes, other nicotine-containing products and a growing portfolio of smoke-free alternatives for adult smokers. The firm traces its corporate roots to the 19th century Philip Morris enterprise and was established as an independent, publicly traded company following a 2008 separation from what is now Altria. Since the spin-off, the company has focused on serving international markets outside the United States.

PMI's product mix includes traditional combustible cigarettes as well as smoke-free offerings such as heated tobacco systems and other reduced-risk products.

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