Cigarette maker Philip Morris (PM) - Get Report on Tuesday revealed second-quarter earnings that were better than analysts’ forecasts and also reinstated its full-year guidance as sales of its heated tobacco products continued strong through the pandemic and lockdown.
The Marlboro maker said it earned $1.95 billion, or $1.29 an adjusted share, vs. $2.32 billion, or $1.46 a share, in the comparable year-ago period. Analysts polled by FactSet had been expecting earnings of $1.10 a share.
Revenue came in at $6.65 billion, above the $6.5 billion expected by analysts.
Cigarette and heated tobacco unit shipment volume was down 14.5%, reflecting a 17.6% drop in cigarette shipment volumes, though heated tobacco unit shipment volume was up by 24.3%, the company said.
"Despite a very challenging quarter due to the pandemic, we delivered results above our previously communicated expectations for both net revenues and reported diluted EPS," CEO Andre Calantzopoulos said in the statement.
Philip Morris also reinstated its full-year earnings forecast after pulling guidance in the first quarter amid the coronavirus pandemic and ensuing lockdown. Philip Morris now expects to post full-year adjusted per-share earnings of between $4.92 to $5.07.
Separately, the New York-based company said that it received U.S. Food and Drug Administration approval to market a version of its IQOS nicotine-based smokeless product as a "modified risk tobacco product."
Total IQOS users at quarter-end were approximately 15.4 million, of which approximately 11.2 million had stopped smoking and switched to IQOS, according to Philip Morris.
Shares of Philip Morris were up 4.93% at $76.48 in trading on Tuesday.