Philip Morris Climbs After 3rd-Quarter Earnings Beat Estimates

Philip Morris third-quarter profit beat Wall Street's estimates. Revenue fell but still beat expectations.
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Shares of Philp Morris  (PM) - Get Report were higher after the New York cigarette maker reported third-quarter results that topped analyst estimates. 

Earnings rose 21% to $1.48 a share from $1.22 in the year-earlier period. The latest adjusted earnings were $1.42 a share. Revenue slipped 2.6% to $7.45 billion. 

Analysts surveyed by FactSet were expecting earnings of $1.35 a share, or an adjusted $1.36, on revenue of $7.28 billion.

"Our combustible tobacco business recorded an improved sequential performance, supported by better underlying total industry volumes across both developed and emerging markets," Chief Executive André Calantzopoulos said in a statement. 

The company also touted gains in its e-cigarette brand, IQOS, which at the end of September had some 16.4 million users. Of them, 11.7 million had stopped smoking to switch.

"The sustained momentum of IQOS was excellent," the company said. Smoke-free products accounted for nearly a quarter of total revenue in the third period, Calantzopoulos said. 

The company raised its full-year GAAP earnings estimate to a range of $5.03 to $5.08 a share from a range of $4.92 to $4.99 a share. 

Cigarette and heated-tobacco shipment volume fell 8% over the nine months. 

Shares of Philip Morris at last check rose 0.6% to $78.28.