Today, Reuters reported that Credit Suisse downgraded Philip Morris International (PM) from “neutral” to “underperform” and lowered its price target to $74 from $92.
The potential ban on flavored e-cigarettes to be favorable for Altria Group (MO), Philip Morris International (PM), and British American Tobacco (BTI).
Since the beginning of 2018, Philip Morris stock has fallen 24.6% due to an increase in tobacco regulations, a decline in cigarette shipment volumes, and rising competition.
Altria Group (MO) posted its 4Q17 earnings on February 1, 2018. The company posted adjusted earnings per share of $0.91 on net revenues of ~$4.7 billion.
Altria Group (MO) announced its 2Q17 earnings on July 27, 2017. The company has posted EPS (earnings per share) of $1.03 on revenues, net of excise taxes, of $5.07 billion.
According to the WHO, under the current regulatory regimes, the percentage of the cigarette smoking population is expected to fall from 22% to 19% by 2025.
Altria Group (MO) and Philip Morris International (PM) are trading at higher valuations relative to the S&P 500 Index (SPY) (IVV) (VOO) and the Dow Jones Industrial Average (DIA).
Operating income for the All Other segment decreased by 44.3% to $30 million in 1Q16. Despite a weak top line, Vuse Digital Vapor Cigarette continued to deliver robust results in 1Q16.
Natural American Spirit’s retail market share increased by 0.3% to 2% in 1Q16 in the US, on a volume growth of 22.1%. Natural American Spirit’s volume grew by double digits, increasing by 22% in 1Q16.
Reynolds American’s (RAI) key to transformation is robust results and an active innovation pipeline. The company formed RAI Innovation Company to seek alternatives to traditional cigarettes.
Gross margin and free cash flow Philip Morris’s (PM) gross margin decreased 0.7 points to 65.5% in 1Q16, compared to 66.3% in 1Q15. Despite the adverse currency impact, Philip Morris is focused on generating strong free cash flow in line with last year’s level. The company’s free cash flow (or FCF) increased by more than […]
Philip Morris International (PM) released its 1Q16 earnings on April 19, 2016. The company’s adjusted diluted EPS fell 15.5% to $0.98 compared to $1.15 in 1Q15.
Philip Morris’ (PM) reported operating income declined 27.6% to $1.9 billion in 4Q15 compared to $2.6 billion in 4Q14. The decline was primarily due to the negative impact of foreign currency.
Inventory levels for 4Q15 were lower for tobacco companies due to declining shipment volume of cigarettes. The overall cigarette industry volume declined 0.5% in 4Q15.
The Aberdeen Asia-Pacific (ex-Japan) Equity Fund (APJAX) aims to invest 80% of its net assets in equity securities of Asia-Pacific (ex-Japan) companies.
For 4Q15, the Wall Street consensus revenue estimate for Phillip Morris is $6.5 billion, an 8.8% decrease from the revenue in the corresponding quarter last year.
Reynolds American’s stock price fell after it released earnings. The stock price fell 2.3% to $48.35 on October 27, 2015, after the results were released.
The Invesco European Growth Fund Class A “seeks long-term growth of capital by investing in reasonably priced, quality companies in the European region.
According to the Office for National Statistics, the unemployment rate in the UK dropped to 5.4% in the three months to August 2015 from 5.5% in the prior period.
Reynolds American’s brand portfolio includes R. J. Reynolds Tobacco’s growth brands Camel and Pall Mall. It also includes support brands Doral and Misty.
On September 22, 2015, Reynolds American’s (RAI) indirect subsidiary, R.J. Reynolds Tobacco Company, signed a technology-sharing term sheet with British American Tobacco (BTI).
On September 29, Japan Tobacco (JAPAF) (JAPAY) announced it has entered into an agreement with Reynolds American (RAI) to acquire international rights to Natural American Spirit for about $5 billion.
With 516 holdings, the top three sectors invested in by the Vanguard European Stock Index Fund were financials, healthcare, and consumer staples, with exposures of 23.3%, 13.9%, and 13.6%, respectively.
Altria’s R&D expenses for fiscal 2014 were $0.2 billion, or 0.9% of net sales. Its R&D expenses upped by 9.2% in 2014, reflecting a trend toward innovation.
Altria’s business faces threats of high scrutiny, taxation, and regulation. Prohibitions on cigarette sales and smoking bans in public places affect sales.
Altria’s subsidiary Ste. Michelle is a leading producer of Washington state wines. It owns wineries and distributes wines in several regions and countries.
Altria has a wholly-owned subsidiary named Altria Group Distribution, which provides sales, distribution, and consumer engagement services to subsidiaries.
Altria’s smokeless tobacco company, US Smokeless Tobacco, manufactures smokeless tobacco products, which contributed 7.6% of Altria’s total tobacco revenue.
MO’s tobacco business segment consists of smokeable and smokeless tobacco products. The company’s smokeable tobacco companies include PM USA and Middleton.
Altria is a dominant manufacturer and seller of smokeable products, smokeless products, and wine. Its tobacco-based premium brands face stiff competition.
Philip Morris’s future growth depends on investments in new capabilities, brands, distribution channels, technologies, and emerging and mature geographic markets.
Philip Morris’s stock over the last twelve months showed a ~9.2% decrease in August 2015. But its higher returns on invested capital indicate efficiency.
