NEW YORK (TheStreet) -- Philip Morris Int'l (PM - Get Report) said its Marlboro e-cigarette has quickly captured 3% of Japanese tobacco sales, Reuters reports. The country's Japan Tobacco relies on that market for 40% of its profit.
Philip Morris's e-cigarette iQOS made up 2.2% of Japan's tobacco sales in the quarter ended June 30, the company said.
That figure had risen to 2.7% by the end of June after the company rolled out the 9,980 yen ($98.53) smokeless cigarette in late April, Reuters noted. The company also launched "HeatSticks" which cost the same as regular cigarettes.
"The figures clearly show that iQOS is stealing a chunk of the rolled tobacco market," Masashi Mori, an analyst at Credit Suisse Securities in Tokyo, told Reuters.
Overall, cigarette sales in Japan in June fell 5.2%.
Shares of Phillip Morris are edging higher in pre-market trading on Friday.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its expanding profit margins and solid stock price performance.
But the team also finds weaknesses including 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