-- Philip Morris International (PM) reported first-quarter results above market estimates on Wednesday, while lowering its full-year earnings outlook.
The cigarette and vape maker's adjusted earnings rose to $1.96 a share for the March quarter from $1.69 a year earlier. Analysts polled by FactSet expected $1.83. Revenue gained 9.1% to $10.15 billion, topping the Wall Street consensus of $9.91 billion.
The US-Israel war with Iran had a "small impact," affecting shipments to global travel retail and certain markets in the Middle East for combustibles and heated tobacco units, the company said. High energy prices and supply disruptions in a number of markets have yet to lead to a noticeable change in consumer behavior, Philip Morris said.
The company expects 2026 adjusted EPS in the range of $8.36 to $8.51, down from its previous projection of $8.38 to $8.53. Analysts forecast non-GAAP EPS of $8.38.
The company has factored in some increases in transport, energy and other costs into full-year guidance, though a "prolonged impact" from the Middle East war isn't expected. "The situation remains uncertain in both duration and potential impact, and it is difficult to assess the broader implications for the consumer or the global cost environment," the company said.
Philip Morris' total shipment volume in the first quarter declined 1.9% to 184.3 billion units amid declines in cigarettes and oral smoke-free products. Electronic vapor shipment volume surged 95%.
In the second quarter, Philip Morris expects adjusted EPS of $2.02 to $2.07, including a foreign-exchange benefit of $0.02 at current rates. Analysts project $2.12.
Shares of the company advanced 6.1% in Wednesday trading.
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