Shares of Philip Morris International (PM) - Get Report eased Thursday, even after the tobacco giant raised the bottom of its estimated earnings range for full-year 2020 and increased its quarterly dividend.
The company revised its GAAP earnings per share forecast to a range of $4.92 to $4.99, at prevailing exchange rates, compared to its prior forecast range of $4.84 to $4.99, which was provided on July 21.
“This primarily reflects the expectation of a stronger-than-anticipated performance in the third quarter,” the company said in a statement.
“Excluding an unfavorable currency impact, at prevailing exchange rates, of approximately $0.31 per share, asset impairment and exit costs of $0.04 per share, and a fair value adjustment for equity security investments of $0.04 per share, this forecast represents a projected increase of approximately 3.5% to 5.0% versus pro forma adjusted diluted EPS of $5.13 in 2019,” the company said.
In addition, “excluding an unfavorable currency impact, at prevailing exchange rates, of approximately 7 cents per share, PMI now expects third-quarter reported diluted EPS to be broadly in line with the company’s third-quarter 2019 adjusted diluted EPS of $1.43,” the company said.
As for the dividend, which will be paid Oct. 13, to shareholders of record as of Sept. 24, it was boosted 2.6% to $1.20 a share from $1.17.
Looking at second-quarter earnings, they were “fairly strong,” Morningstar analyst Philip Gorham wrote in July. He put fair value for the stock at $98.
Philip Morris recently traded at $80.12, down 0.43%. The stock has slipped 6% year to date, while the S&P 500 has risen 6%.