NEW YORK (TheStreet) -- Phillip Morris
(PM - Get Report) shares are down 2.9% to $82.35 in trading on Thursday following a disappointing first quarter earnings report.
Net income for the tobacco company fell 12% to $1.88 billion, or $1.18 per share, from $2.13 billion, or $1.28 per share.
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Excluding excise taxes, revenue fell nearly 9% to $6.9 billion, falling short of analysts expected revenue of $7.01 billion.
Shipments to Eastern Europe, Africa and the Middle East fell more than 7% while shipments to Central America and Canada were down almost 5%.
- The gross profit margin for PHILIP MORRIS INTERNATIONAL is rather high; currently it is at 69.17%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 25.51% is above that of the industry average.
- Net operating cash flow has increased to $2,320.00 million or 40.60% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 26.40%.
- PHILIP MORRIS INTERNATIONAL reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, PHILIP MORRIS INTERNATIONAL increased its bottom line by earning $5.26 versus $5.18 in the prior year. For the next year, the market is expecting a contraction of 2.9% in earnings ($5.11 versus $5.26).
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, PM has underperformed the S&P 500 Index, declining 12.33% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Tobacco industry. The net income has decreased by 5.2% when compared to the same quarter one year ago, dropping from $2,095.00 million to $1,987.00 million.
- You can view the full analysis from the report here: PM Ratings Report