Purchase Duty Free Cigarettes Online

Philip Morris lifts full-year revenue estimate

Published on April 30th, 2015 00:00

Philip Morris International Inc.'s first-quarter revenue dropped, pushed by a strong dollar. Nevertheless, its performance overcome analysts' expected results as it sent more cigarettes.

The owner of Marlboro and other cigarette brands out of the United States also lifted its full-year revenue estimate. The stock raised nearly 7% in morning trading.

Marlboro Red Cigarette Pack

Philip Morris gained $1.8 billion, or $1.16 per share, for the period finished March 31. That measures up with $1.88 billion, or $1.18 per share, a year earlier.

The outcomes surpassed Wall Street anticipations. The average estimate of eight experts reviewed by Zacks Investment Research was for revenue of $1.02 per share.

Earnings made up $6.62 billion, not including excise taxes. Three experts reviewed by Zacks predicted $6.25 billion. Since Philip Morris does all of its business abroad, the company has to get around alterations in currency values. A stronger dollar cuts into income gained abroad when it's converted back into dollars.

Cigarette shipment volume raised 1.4% when eliminating purchases. Its greatest acquire was in Eastern Europe, the Middle East and Africa.

Marlboro cigarette deliveries increased 2.1% thanks to the European Union and Eastern Europe, the Middle East and Africa. Shipments of L&M cigarettes went up 8.2% on growth in the Eastern Europe, Middle East and Africa. Chesterfield cigarette deliveries raised 8.6% mainly owing to Italy.

The company said that its cigarette market share increased in markets such as Argentina, Belgium, Egypt, France, Germany, Hong Kong, Italy, Japan, Russia and others.

Philip Morris now predicts full-year revenue between $4.32 and $4.42 per share. Its previous suggestions were for revenue from $4.27 to $4.37 per share.

Shares of Philip Morris, which is situated in New York and Switzerland, gathered $5.37, or 6.8%, to $83.44 in morning trading. They are still down over 1% for the past year.