NYSE$PM

Philip Morris International Inc. · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Philip Morris' business delivered a strong quarterly performance, with adjusted diluted EPS of $1.58, representing currency-neutral growth of 8.5%.

Philip Morris International Inc. reported a strong third-quarter performance in 2021, with an adjusted diluted EPS of $1.58, representing currency-neutral growth of 8.5%. The company reaffirmed its strong growth outlook for 2021, with an adjusted diluted EPS forecast toward the upper-half of its previous range and representing currency-neutral growth of 13% to 14%.

  • Reported diluted EPS of $1.55, up by 4.7%; up by 2.0%, excluding currency.
  • Adjusted diluted EPS of $1.58, up by 11.3%; up by 8.5%, excluding currency.
  • Cigarette and heated tobacco unit shipment volume up by 2.1% (reflecting cigarette shipment volume down by 0.4%, and heated tobacco unit shipment volume up by 23.8% to 23.5 billion units).
  • Net revenues up by 9.1%; up by 7.6%, on an organic basis.

Headline financials

Total Revenue

$8.12B

Previous: $7.45B+9.1%
EPS (adj)

$1.58

Previous: $1.42+11.3%
Capital Expenditures

-$459M

Previous: -$462M+0.6%
Free Cash Flow

$1.97B

Previous: $1.85B+6.6%
Net Income

$2.43B

Previous: $2.31B+5.2%
Operating Income

$3.46B

Previous: $3.24B+6.5%
Gross Profit

$5.53B

Previous: $5.03B+9.9%
Cash & Equivalents

$4.49B

Previous: $4.82B-6.8%
Total Assets

$41.6B

Previous: $39.1B+6.3%

Revenue & EPS history

Philip Morris · Revenue · Quarterly

$8.12B

Q3 2021+9.1%vs Q3 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Philip Morris · $8.12B total across 2 segments · Q3 2021

  • Combustible Products
    $5.8B
  • Reduced-Risk Products
    $2.33B

Forward guidance

PMI revises and narrows its full-year reported diluted EPS forecast to a range of $5.77 to $5.82, at prevailing exchange rates.

Tailwinds

  • A continued gradual improvement in the general operating environment, with potential volatility around the duration and effects of pandemic-related mobility restrictions across PMI's key markets.
  • A slight recovery in PMI's duty-free business during the fourth quarter, following a modest improvement in the third quarter, with intercontinental and Asia travel still very subdued.
  • Adjusted net revenue growth of approximately 6.5% to 7% on an organic basis.
  • An increase in adjusted operating income margin of around 200 basis points on an organic basis.
  • An effective tax rate, excluding discrete tax events, of around 22%.

Headwinds

  • Constrained IQOS device supply due to the ongoing global semiconductor shortage, with reduced device assortment and availability, and therefore lower IQOS user growth rates as PMI prioritizes devices for existing IQOS users; 2021 ILUMA launches in certain markets now planned for the second half of 2022.
  • An estimated total international industry volume progression, excluding China and the U.S., of approximately flat to +1%.
  • A total cigarette and heated tobacco unit shipment volume increase for PMI of approximately 1% to 2%.
  • Heated tobacco unit shipment volume of around 95 billion units.
  • Incremental commercial investments in the second half of 2021 of approximately $300 million versus the first half.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+0.8%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+2.2%

Avg return

30 days after

55%

40 / 73 earnings

Positive

+10.9%

Q4 2024

Best reaction

-16.9%

Q1 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.5%+5.0%+23.5%
Q4 2025+0.4%+2.3%-6.6%
Q3 2025-4.0%-0.3%-1.5%
Q2 2025-0.4%+1.7%+0.1%
Q1 2025+2.3%+3.1%+8.6%
Q4 2024+10.9%+13.0%+15.2%
Q3 2024+10.5%+9.2%+10.3%
Q2 2024+3.9%+5.7%+12.0%
Q1 2024+5.3%+1.0%+5.9%
Q4 2023-2.5%-2.5%+1.4%
Q3 2023-0.7%-2.6%-1.4%
Q2 2023-1.3%-1.6%-4.5%
Q1 2023-3.7%-2.8%-8.2%
Q4 2022+1.1%+0.4%-2.9%
Q3 2022+0.0%+2.3%+11.3%
Q2 2022+6.8%+7.5%+11.5%
Q1 2022-0.3%-0.3%-1.8%
Q4 2021+3.7%+5.4%-14.6%
Q3 2021-0.4%-0.6%-6.1%
Q2 2021-1.4%+0.5%+3.6%
Q1 2021+2.7%+3.2%+6.3%
Q4 2020+5.0%+6.7%+7.4%
Q3 2020-5.2%-4.4%-0.4%
Q2 2020+4.3%+5.4%+7.3%
Q1 2020-4.9%-4.2%-8.3%
Q4 2019+4.2%+6.6%+4.0%
Q3 2019+1.8%+2.6%+7.2%
Q2 2019+9.5%+7.0%+4.8%
Q1 2019-1.4%-0.7%+1.6%
Q4 2018+5.9%+6.7%+15.8%
Q3 2018+5.0%+4.7%+2.1%
Q2 2018+2.6%+1.7%+3.5%
Q1 2018-16.9%-18.7%-20.4%
Q4 2017+1.1%+4.2%+9.5%
Q3 2017-2.7%-3.5%-8.8%
Q2 2017-1.7%-3.1%-5.2%
Q1 2017-3.8%-0.7%+0.7%
Q4 2016+5.4%+5.9%+14.9%
Q3 2016+0.5%+0.8%-6.5%
Q2 2016-3.3%-3.1%-2.6%
Q1 2016-2.5%
Q4 2015-0.3%
Q3 2015+3.9%
Q2 2015+3.8%
Q1 2015+9.1%
Q4 2014-1.0%
Q3 2014+2.9%
Q2 2014+1.6%
Q1 2014-1.5%
Q4 2013+4.4%
Q3 2013+1.0%
Q2 2013-1.2%
Q1 2013-2.2%
Q4 2012+3.1%
Q3 2012-4.1%
Q2 2012-0.6%
Q1 2012+0.1%
Q4 2011+1.1%
Q3 2011+0.5%
Q2 2011-1.7%
Q1 2011-1.2%
Q4 2010+0.8%
Q4 2007+0.8%
Q3 2010-1.0%
Q2 2010+0.7%
Q1 2009+0.7%
Q1 2010-0.0%
Q4 2009-1.4%
Q3 2008+2.5%
Q3 2009+2.5%
Q2 2009-2.1%
Q2 2008-2.1%
Q4 2008-2.1%

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