Investing.com -- Philip Morris International Inc (NYSE:PM) has raised its full-year earnings growth outlook after the world's top tobacco company unveiled stronger-than-anticipated income in the third quarter.
The producer of Marlboro and Virginia Slims cigarettes outside the US has been boosted in recent months by an uptick in the prices of cigarettes and strong returns from its ZYN nicotine pouch brand.
In the the quarter ended on Sept. 30, net revenues from the group's combustibles unit rose by 5.2% thanks to another three-month period of high single-digit pricing and "resilient" industry volumes.
Global shipment volumes of ZYN were bolstered by easing supply chain snags and solid demand in the US, where the number of cans of the product shipped increased by 41.4% versus the prior year to 149.1 million.
Meanwhile, Philip Morris' IQOS heated tobacco business, which has recently disappointed investors despite being a centerpiece of a drive by the company to expand its revenue streams, delivered a "reacceleration" in adjusted in-market sales growth.
"In the vaping category, our focused strategy is delivering good results with excellent volume momentum and unit cost improvements. Europe is at the forefront, as the closed pod segment continues to take share from disposables," Philip Morris said in a statement.
Total shipping volumes rose by 2.9% to 203 billion units Adjusted total earnings per share, pushing adjusted diluted earnings per share up by 14.4% to $1.91. Bloomberg consensus estimates had called for $1.81.
As a result, the Connecticut-based company said it now expects to see adjusted diluted per-share profit grow by 14% to 15% in 2024, up from a prior estimate of 11% to 13%.
Shares in Philip Morris inched higher in premarket US trading on Tuesday following the release of the earnings. The stock's price has now surged by more than 24% so far this year.