The tobacco giant's stock price jumped 1.64% to $80.40 in premarket trading after it reported adjusted diluted earnings per share of $1.43 cents for the third quarter, down 0.7%.
That represented a major improvement over the estimate of analysts surveyed by Zacks Investment Research, who predicted a 6.16% drop in EPS to $1.35 a share.
Philip Morris reported a 1.8% increase in net revenue to $7.64 billion for the quarter, beating Zacks estimate of $7.61 billion.
The company reported big gains in shipments of its smokeless, heated tobacco product, IQOS, with the market share of the new product rising 1.3% to 5.1%, a number that excludes the United States, where it was recently approved for sale.
Shipment volume of traditional cigarettes fell 5.9% during the quarter.
"Our third-quarter results continued to reflect strong underlying business performance and include the better-than-anticipated timing of pricing and costs compared to our previously communicated assumptions for the quarter," said Philip Morris CEO Andre Calantzopoulos in a press release.