
Philip Morris (PM) Stock Falls on Disappointing Earnings, Guidance
NEW YORK (TheStreet) -- Philip Morris International (PM) - Get Report stock is dropping 1.25% to $88.67 on Thursday afternoon following the tobacco giant's latest financial results released earlier this morning.
For fiscal 2015 fourth quarter, the company earned 81 cents a share, in line with estimates, but lower than $1.03 a share a year ago.
Revenue came in at $6.3 billion, short of the expected $6.49 billion and down 11% year-over-year.
Cigarette volume dropped 2.4% to 209.8 billion units, due to the 3.9% decline in the Eastern Europe, Middle East and Africa unit, and a 6% decrease in Latin America and Canada. This overshadowed the 1% growth in the European Union.
Also pushing the stock down today was its grim 2016 outlook. It now projects profit to be between $4.25 a share to $4.35 a share, lower than analysts' estimates of $4.52 a share.
Going forward, it looks like international cigarette volume excluding China and the U.S. will drop by 2% to 2.5%, the company added.
Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C+.
The company's strengths can be seen in multiple areas, such as its expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: PM
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