NYSE$PM

Philip Morris International Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported diluted EPS of $1.34, adjusted diluted EPS of $1.53 and pro forma (excluding Russia and Ukraine) adjusted diluted EPS of $1.33, representing currency-neutral growth of 8.3%.

Philip Morris International Inc. (PMI) announces its 2022 third-quarter results, with a strong performance driven by IQOS momentum and a robust combustible tobacco portfolio. The company is raising the low end of its full-year pro forma growth outlook for adjusted net revenues and continues to expect full-year pro forma adjusted diluted EPS growth of 10% to 12%, excluding currency.

  • Net revenues from smoke-free products accounted for 30.1% of total net revenues, or 29.2% on a pro forma basis.
  • Market share for heated tobacco units (HTUs) in IQOS markets up by 1.3 points to 7.7% on a pro forma basis
  • Pro forma total IQOS users at quarter-end estimated at approximately 19.5 million (up by 3.6 million or 22% versus September 30, 2021), of which approximately 13.5 million had switched to IQOS and stopped smoking
  • Increased regular quarterly dividend by 1.6% to $1.27 per share, or an annualized rate of $5.08 per share

Headline financials

Total Revenue

$8.03B

Previous: $8.12B-1.1%
EPS (adj)

$1.53

Previous: $1.58-3.2%
Capital Expenditures

-$730M

Previous: -$459M-59.0%
Free Cash Flow

$1.36B

Previous: $1.97B-31.0%
Net Income

$2.09B

Previous: $2.43B-14.0%
Operating Income

$2.97B

Previous: $3.46B-14.1%
Gross Profit

$5.1B

Previous: $5.53B-7.8%
Cash & Equivalents

$5.37B

Previous: $4.49B+19.5%
Total Assets

$40.7B

Previous: $41.6B-2.1%

Revenue & EPS history

Philip Morris · Revenue · Quarterly

$8.03B

Q3 2022-1.1%vs Q3 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Philip Morris · $5.61B total across 1 segment · Q3 2022

  • Combustible Products
    $5.61B-3.2%

Forward guidance

PMI targets 2022 full-year reported diluted EPS of $5.47 to $5.62, adjusted diluted EPS of $5.81 to $5.96 and pro forma adjusted diluted EPS of $5.22 to $5.33, representing currency-neutral growth of 10% to 12%.

Tailwinds

  • The full contribution of the company's operations in Russia and Ukraine for the entire year.
  • No asset impairment costs or further other charges related to the company's operations in Russia or Ukraine.
  • No contribution from the operations of Swedish Match in 2022 following the assumed transaction close in the fourth quarter and no further costs associated with the Swedish Match offer.
  • No impact on net earnings or operating cash flow related to PMI's agreement to obtain the full rights to IQOS in the U.S., as PMI is currently evaluating the impact of the agreement on the company's consolidated financial statements.
  • A continued gradual improvement in PMI's duty-free business outside Asia.

Headwinds

  • The impact of delayed production capacity build-up for ILUMA HTUs due to the decision to cancel manufacturing plans in Russia.
  • A pro forma estimated total international industry volume change, excluding China and the U.S., of approximately flat to +1%.
  • Pro forma total cigarette and HTU shipment volume growth for PMI of approximately 2% to 3%, compared to approximately 1.5% to 2.5% previously.
  • Pro forma HTU shipment volume of 89 to 91 billion units compared to 90 to 92 billion units previously (despite continued strong expected in-market sales volume growth), reflecting the impact of global supply chain disruptions, as well as production constraints for ILUMA HTU consumables in the face of better-than-anticipated performance for ILUMA.
  • A pro forma adjusted operating income margin change of -50 basis points to flat on an organic basis (compared to flat to +50 basis points previously).

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 2022

Historical avgQ3 2022

+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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