Philip Morris International (NYSE:PM) Shares Gap Down - Here's Why

Key Points

• Philip Morris shares initially fell sharply, opening at $187.14 versus a prior close of $199.90, as investors focused on warnings that global conflicts could hurt operating income.
• The company beat third-quarter expectations, reporting adjusted EPS of $2.36 and revenue of $11.44 billion, helped by 5.5% sales growth and strong demand for smoke-free products, which exceeded 40% of total revenue.
• Despite a 4.9% decline in reported diluted EPS due to inflation, investment and other costs, analysts remain positive: PM has a “Moderate Buy” consensus rating and a $207 average price target, while the company raised its quarterly dividend to $1.60 per share.

Philip Morris International Inc. (NYSE:PM - Get Free Report) shares gapped down before the market opened on Wednesday. The stock had previously closed at $199.90, but opened at $187.14. Philip Morris International shares last traded at $196.0350, with a volume of 953,789 shares trading hands.

More Philip Morris International News

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

• Positive Sentiment: PM reported third-quarter adjusted diluted EPS of $2.36, exceeding the $2.30 analyst consensus, while revenue rose 5.5% year over year to $11.44 billion, ahead of the $11.32 billion estimate. Philip Morris beats third-quarter estimates on smoke-free product demand
• Positive Sentiment: Demand for smoke-free products remained a key growth driver, with smoke-free revenue surpassing 40% of total revenue. Nicotine pouches, particularly Zyn, and higher tobacco prices helped offset broader cost pressures. Philip Morris beats Q3 2026 estimates as smoke-free revenue tops 40%
• Neutral Sentiment: Management updated its 2026 full-year adjusted diluted EPS forecast for currency effects only. Adjusted EPS increased 5.4% year over year, or 5.8% excluding currency, supported by volume growth and double-digit organic operating-income growth. Philip Morris International Reports 2026 Third-Quarter Results
• Negative Sentiment: Reported diluted EPS fell 4.9% to $2.12, as inflation, increased investment and other costs weighed on profitability despite higher sales. Philip Morris Profit Falls, Despite Higher Sales
• Negative Sentiment: Management warned that global conflicts are disrupting operations and are expected to affect operating income, clouding the earnings outlook. That caution appears to be outweighing the quarterly beat for investors. Philip Morris delivers Q3 beat but warns of conflicts

Analyst Ratings Changes

A number of brokerages recently commented on PM. Stifel Nicolaus raised their price target on Philip Morris International from $195.00 to $205.00 and gave the stock a "buy" rating in a research note on Thursday, July 23rd. Barclays upped their price objective on shares of Philip Morris International from $205.00 to $225.00 and gave the stock an "overweight" rating in a report on Wednesday, July 29th. Weiss Ratings upgraded shares of Philip Morris International from a "buy (b)" rating to a "buy (b+)" rating in a report on Thursday, October 8th. BTIG Research set a $221.00 target price on shares of Philip Morris International and gave the stock a "buy" rating in a research report on Friday, July 24th. Finally, Needham & Company LLC raised their target price on shares of Philip Morris International from $200.00 to $215.00 and gave the stock a "buy" rating in a research report on Thursday, July 23rd. Ten equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $207.00.

Philip Morris International Trading Down 1.4%

The company has a market cap of $307.13 billion, a PE ratio of 28.29, a PEG ratio of 2.58 and a beta of 0.34. The stock has a 50 day moving average price of $191.76 and a 200 day moving average price of $183.18.

Philip Morris International (NYSE:PM - Get Free Report) last released its quarterly earnings results on Wednesday, October 21st. The company reported $2.36 earnings per share for the quarter, beating the consensus estimate of $2.30 by $0.06. The company had revenue of $11.44 billion for the quarter, compared to analyst estimates of $11.32 billion. Philip Morris International had a negative return on equity of 163.41% and a net margin of 11.06%. The firm's revenue was up 5.5% on a year-over-year basis. During the same period in the previous year, the company posted $2.24 earnings per share. Equities analysts expect that Philip Morris International Inc. will post 8.38 EPS for the current fiscal year.

Philip Morris International Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, October 26th. Stockholders of record on Friday, October 2nd will be issued a dividend of $1.60 per share. This is a boost from Philip Morris International's previous quarterly dividend of $1.47. The ex-dividend date is Friday, October 2nd. This represents a $6.40 dividend on an annualized basis and a dividend yield of 3.2%. Philip Morris International's dividend payout ratio (DPR) is presently 91.95%.

Institutional Trading of Philip Morris International

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Vermillion Wealth Management Inc. increased its stake in Philip Morris International by 146.5% during the first quarter. Vermillion Wealth Management Inc. now owns 175 shares of the company's stock worth $29,000 after acquiring an additional 104 shares during the last quarter. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Philip Morris International in the second quarter worth approximately $29,000. Cedar Mountain Advisors LLC raised its holdings in shares of Philip Morris International by 60.2% in the first quarter. Cedar Mountain Advisors LLC now owns 189 shares of the company's stock worth $31,000 after buying an additional 71 shares during the period. Wilkerson Advisory Group LLC lifted its position in shares of Philip Morris International by 109.2% during the first quarter. Wilkerson Advisory Group LLC now owns 205 shares of the company's stock worth $34,000 after purchasing an additional 107 shares during the last quarter. Finally, Kelly Lawrence W & Associates Inc. CA bought a new stake in Philip Morris International during the 2nd quarter valued at about $34,000. 78.63% of the stock is owned by hedge funds and other institutional investors.

Philip Morris International Company Profile

Philip Morris International Inc NYSE: PM is a global tobacco and nicotine company headquartered in Stamford, Connecticut. It was established as an independent company in 2008 following the separation of Philip Morris International from Altria Group. The company develops, manufactures and markets tobacco, nicotine and other related consumer products primarily outside the United States.

Its portfolio includes internationally recognized cigarette brands such as Marlboro, Parliament, L&M, Chesterfield and Bond Street.

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