Philip Morris Smokes Estimates

Philip Morris International (PM Quote), the cigarette seller that was recently spun off from Altria (MO Quote), topped analysts' estimates for the quarter in which it became an independent company.

For the quarter ended March 31, the company earned $1.87 billion, or 89 cents a share, up from $1.45 billion and 69 cents a share a year earlier. Net revenue rose 17.6% to $15.56 billion. Excluding excise taxes, revenue was up 14.1% to $6.33 billion.

Analysts surveyed by Thomson Financial were looking for earnings of 77 cents and revenue, before excise taxes, of $6.15 billion.

Cigarette shipment volume was up 2.2% for the quarter to 217.9 billion units.

"Our robust first-quarter results are a terrific start out of the gate," said Louis Camilleri, Chairman and Chief Executive Officer. "Importantly, we continue to witness an improvement in our business fundamentals as evidenced by the double-digit revenue and income growth recorded in each of our geographic segments. While we continue to face some challenges in certain markets, I am confident that we have the appropriate strategies and resources in place to deal with them effectively."

Looking ahead, Philip Morris increased its full-year earnings forecast to a range of $3.18 to $3.24 a share. Previously, it expected $3.11 to $3.17. Analysts are projecting $3.20.

Separately, the company said it has reached an agreement to acquire certain brands from Imperial Tobacco Group (ITY Quote) in a deal valued at 254 million euros ($404 million). Philip Morris said the acquisition should boost its full-year profit by about 1 cent.

Philip Morris shares were rising 3.7% to $51.92, and Altria was up 1.6% at $22.41.

Elsewhere in the tobacco group, Reynolds American (RAI Quote) was up 0.8%, while Loews (LTR Quote), the owner of Lorillard, was unchanged. British American Tobacco (BTI Quote) was tacking on 0.3%.