Philip Morris (PM) Q3 Earnings Report Preview: What To Look For

Tobacco company Philip Morris International (NYSE:PM) will be announcing earnings results this Wednesday before market open. Here’s what to look for.

Philip Morris beat analysts’ revenue expectations last quarter, reporting revenues of $11.19 billion, up 10.4% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and gross margin in line with analysts’ estimates.

Is Philip Morris a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Philip Morris’s revenue to grow 4.4% year on year, slowing from the 9.4% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Philip Morris rarely misses Wall Street’s revenue estimates.

Looking at Philip Morris’s peers in the consumer staples segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Constellation Brands delivered year-on-year revenue growth of 6.1%, beating analysts’ expectations by 3.9%, and Conagra reported a revenue decline of 1.4%, in line with consensus estimates. Constellation Brands traded up 2.4% following the results while Conagra was down 6.6%.

Read our full analysis of Constellation Brands’s results here and Conagra’s results here.

Investors in the consumer staples segment have had steady hands going into earnings, with share prices flat over the last month. Philip Morris is up 7.4% during the same time and is heading into earnings with an average analyst price target of $208.80 (compared to the current share price of $201.27).

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