Why Philip Morris’s Valuation Multiple Fell: Weak 1Q17 Earnings
Valuation multiples help investors make investment decisions. They’re driven by investors’ willingness to pay, perceived growth, risks, and uncertainties.
As of April 24, 2017, Philip Morris (PM) was trading at $112.39. The stock price might have factored in the various estimates we discussed in the earlier parts of this series.
In 1Q17, Philip Morris (PM) posted gross, EBIT (earnings before interest, and tax), and net margins of 64.1%, 39.5%, and 26.2%, respectively.
In 1Q17, Philip Morris International (PM) posted adjusted EPS (earnings per share) of $0.98 against analysts’ estimate of $1.03.
Philip Morris’s 1Q17 net revenue fell 0.3% from $6.08 billion to $6.06 billion due to a decline in cigarette shipments of 9.4%.
Analysts expect Philip Morris (PM) to post revenue of $29.5 billion, which represents growth of 10.7% from $26.7 billion in 1Q16.
Philip Morris International (PM) announced its 1Q17 earnings on April 20, 2017. Compared to 1Q16, revenue fell.
Fourteen Wall Street analysts are covering Kimberly-Clark (KMB) stock. They’ve rated the company a 2.9 on a scale of 1.0 (“strong buy”) to 5.0 (“strong sell”).
As of April 24, 2017, Kimberly-Clark (KMB) was trading at a 12-month forward PE (price-to-earnings) ratio of 20.4x.
Kimberly-Clark (KMB) generated about $110.0 million in cost savings in 1Q17 and remains on track to save about $400.0 million in 2017.
Kimberly-Clark’s (KMB) 1Q17 sales of $4.5 billion were in line with the Wall Street expectation. However, sales remained flat compared to 1Q16.
Kimberly-Clark’s (KMB) personal care segment rose 2.0% in 1Q17, driven by increased volumes and a currency tailwind.
Kimberly-Clark (KMB) reported its 1Q17 results on April 24, 2017. Its EPS (earnings per share) of $1.57 exceeded the Wall Street estimate of $1.55.
CL’s management expects its gross margin to reach the higher end of its projected growth range of 75–125 basis points in 2017.
About 13.0% of analysts have recommended a “buy” for CL stock, while 87.0% have recommended a “hold” for the stock.
As of April 20, Colgate-Palmolive (CL) was trading at a 12-month forward PE ratio of 25.1x, which is higher than SPX’s 18.4x and XLP’s 21.3x.
Analysts expect Colgate-Palmolive (CL) to post revenue of $3.8 billion in 1Q17, which would represent a YoY (year-over-year) growth of 0.8%.
CL’s organic sales in its North American segment remained flat in 4Q16. Volume gains in toothpaste were offset by a fall in toothbrushes and liquid hand soap.
Colgate-Palmolive is slated to report its 1Q17 results on Friday, April 28. Analysts expect CL to report adjusted EPS of $0.66 per share—a YoY growth of 4.8%
22 Wall Street analysts cover Procter & Gamble (PG) stock. They’ve rated the stock a 2.4 on a scale of one (strong buy) to five (strong sell).