NYSE$PM

Philip Morris International Inc. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported exceptionally strong performance with record quarterly net revenues and earnings per share.

Philip Morris International reported strong Q3 2024 results, with record quarterly net revenues and EPS. The company raised its full-year growth outlook for adjusted diluted EPS to a range of 14% to 15%, excluding currency.

  • Smoke-free business accounted for 38% of total net revenues and 40% of gross profit.
  • IQOS continues strengthening its overall position as the second largest nicotine ‘brand’ in markets where present.
  • Oral SFP shipment volume increased by 24.7% in cans, fueled by ZYN nicotine pouch growth in the U.S.
  • Combustibles net revenues grew by 5.2%, driven by another quarter of high single-digit pricing and resilient industry volumes.

Headline financials

Total Revenue

$9.91B

Previous: $9.14B+8.4%
EPS

$1.97

Previous: $1.67+18.0%
HTU Shipments

35.4B

No prior period
Cigarette Shipments

163.2B

No prior period
Adj. Operating Margin

41.9%

Previous: 40.8%+2.7%
Capital Expenditures

-$1.17B

Previous: -$1.01B-15.4%
Free Cash Flow

$1.92B

Previous: $1.04B+83.5%
Net Income

$3.08B

Previous: $2.05B+50.0%
Operating Income

$3.65B

Previous: $3.37B+8.4%
Gross Profit

$6.55B

Previous: $5.98B+9.5%
Cash & Equivalents

$4.26B

Previous: $3.02B+41.1%
Total Assets

$66.9B

Previous: $62.9B+6.3%

Revenue & EPS history

Philip Morris · Revenue · Quarterly

$9.91B

Q3 2024+8.4%vs Q3 2023
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

Philip Morris International raised its full-year growth outlook for adjusted diluted EPS to a range of 14% to 15%, excluding currency.

Tailwinds

  • Total cigarette, HTU and oral smoke-free product shipment volume growth for PMI of 2% to 3% driven by smoke-free products.
  • HTU adjusted IMS to deliver around 13% growth for the full year, and HTU shipment volumes of around 140 billion units.
  • Nicotine pouch shipment volume in the U.S. of 570 to 580 million cans.
  • Net revenue growth of around 9.5% on an organic basis.
  • Organic operating income growth of 14% to 14.5%.

Headwinds

  • Factors described in the Forward-Looking and Cautionary Statements section of this release represent continuing risks to these projections.
  • No earnings impact from potential impairments of equity holdings, including potential impairment of PMI’s Canadian affiliate, Rothmans, Benson & Hedges Inc.
  • Full-year amortization of acquired intangibles of $0.42 per share, which includes an estimate of amortization of IQOS commercialization rights in the U.S. following the closing of the agreement to end our commercial relationship with Altria Group, Inc. covering IQOS in the U.S. effective May 1, 2024.
  • Net financing costs of approximately $1.1 to $1.2 billion.
  • An effective tax rate, excluding discrete tax events, of approximately 21% to 22%.

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 2024

Historical avgQ3 2024

+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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