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Investing.com -- Philip Morris International Inc. reported better-than-expected fourth-quarter revenue on Tuesday, sending shares up 7% as investors cheered the company’s strong smoke-free product growth and 2025 outlook.
The tobacco giant posted Q4 revenue of $9.71 billion, surpassing analyst estimates of $9.5 billion. Adjusted earnings per share came in at $1.49, just shy of the $1.50 consensus forecast.
Philip Morris (NYSE:PM) saw continued momentum in its smoke-free portfolio, with heated tobacco unit shipment volume rising 5.1% year-over-year to 35.7 billion units. The company’s oral nicotine pouch brand ZYN was a standout performer, with U.S. shipments surging nearly 42% to 165 million cans.
"2024 was a remarkable year for PMI. We delivered very strong full-year results driven by the continued growth of IQOS and ZYN in addition to a robust combustibles performance," said CEO Jacek Olczak.
For 2025, Philip Morris forecasts adjusted EPS of $7.04 to $7.17, representing 7.2% to 9.1% growth over 2024. The company expects total cigarette and smoke-free product shipment volume growth of up to 2%, driven by 12% to 14% growth in smoke-free products.
The outlook and strong Q4 revenue appear to be driving investor optimism, with PMI shares gaining 7% following the earnings release.