Philip Morris International Inc

The potential ban on flavored e-cigarettes to be favorable for Altria Group (MO), Philip Morris International (PM), and British American Tobacco (BTI).

In 4Q16, the Smokeable segment made up 84% of Altria’s total revenues. The Smokeless, Wine, and Other segments made up 10.3%, 5.1%, and 0.6% of the total, respectively.

Philip Morris’s (PM) European Union region’s reported net revenue fell 6.8% to $1.9 billion in 4Q15 compared to $2.1 billion in 4Q14.

RJR Tobacco’s adjusted operating margin increased 4.1 percentage points to 44.6% in 4Q15.

The net revenues from Altria Group’s Smokeable Products segment fell 1.5% from ~$4.5 billion to ~$4.4 billion.

Philip Morris International (PM) announced its 3Q17 earnings on October 19. The company posted adjusted EPS (earnings per share) of $1.27 on revenues of $7.47 billion.

In 2014, Philip Morris’s Latin America and Canada segment reported a 2.3% decline in net revenues. The region had the company’s lowest revenues, at 11%.

As of June 9, 2017, Altria Group (MO) was trading at $75.46.

As of February 1, 2017, Altria Group (MO) was trading at $71.39. This share price may have been priced into the estimates we’ve discussed previously in this series.

Dividends On December 7, 2016, Altria Group (MO) announced a dividend of $0.61 for 4Q16. The record date was December 22, 2016. The 4Q16 dividend takes the company’s dividend for the year to $2.35, which represents a growth of 8.3% from the dividend of $2.17 in 2015. In 1Q17, 2Q17, and 3Q17, analysts expect the […]

In 2Q17, Philip Morris International (PM) posted revenues of ~$6.9 billion, which represents growth of 4.0% from ~$6.7 billion in 2Q16.

The Eurozone’s Retail PMI (purchasing managers’ index) dipped to 50.4 in June from the 51.4 recorded in May.

Analysts are expecting Altria to post revenue of ~$19.8 billion in 2017, which represents a rise of 2.3% from ~$19.3 billion in 2016.

In 1Q17, Altria Group (MO) posted EPS of $0.72. Removing special items, the adjusted EPS stood at $0.73—slightly lower than analysts’ estimate of $0.74.

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.

Analysts expect Philip Morris International (PM) to post revenue of $7.38 billion in the fourth quarter.

Reynolds American (RAI) has a market cap of $73.4 billion. It rose by 1.6% to close at $51.03 per share on June 20, 2016.

Analysts are expecting Altria Group (MO) to post EPS (earnings per share) of $3.30 in 2017. That represents a rise of 8.9% from $3.03 in 2016.

In 1Q17, analysts are expecting Altria Group (MO) to post a gross margin, EBITDA margin, and net margin of 59.7%, 49.9%, and 30.9%, respectively.

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.

As of August 21, Philip Morris was trading at a forward PE multiple of 15.7x compared to 14.9x before its announcement of its second-quarter earnings.

On January 19, 2018, Jeffries upgraded Philip Morris International (PM) from “hold” to “buy.”

Reynolds American’s peers have outperformed it based on price-to-earnings. However, Reynolds American is ahead of its peers based on price-to-sales.

In 3Q16, Philip Morris International (PM) posted a gross margin, an EBITDA margin, and a net margin of 65.2%, 45.3%, and 27.8%, respectively.

Despite the overall decline in cigarette shipments of 4.4%, Philip Morris outperformed other tobacco companies by posting revenue growth of 9.1%.

Altria Group (MO) has a market cap of $128.8 billion. It fell by 0.36% to close at $65.92 per share on August 25, 2016.

For 3Q17, analysts expect Altria Group (MO) to report a gross margin, EBITDA margin, and net margin of 62.3%, 51.8%, and 31.6%, respectively.

The US dollar (UUP) (UDN) seemed to show mixed response to the Fed’s rate hike on March 15, as prices have reflected a downtrend so far in 2017.

As of April 6, Philip Morris and Altria were trading at higher valuations relative to the S&P 500 Index and the Dow Jones Industrial Average.

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.

The holdings of the DFA Commodity Strategy Portfolio – Institutional Class (DCMSX) mainly consist of corporate and government bonds.

Philip Morris International (PM) has a market cap of $136.3 billion. It rose 0.47% to close at $88.18 per share on December 6, 2016.

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).

Philip Morris (PM) is set to release its 2Q16 earnings results before the Market opens on July 19, 2016. PM’s earnings and revenue missed the consensus Wall Street analyst expectations in 1Q16.

Philip Morris International (PM) has a market cap of $153.4 billion. It rose by 0.14% to close at $99 per share on August 12, 2016.

The DFA Commodity Strategy Portfolio – Institutional Class (DCMSX) is an alternative mutual fund that uses a commodity hedge fund return strategy.

The FDA’s (Food and Drug Administration) recent announcement could have compelled analysts to lower their 12-month target price for Altria Group (MO).

The Consumer Staples Select Sector SPDR ETF fell by 0.4% on November 4, while the Vanguard consumer Staples ETF saw a 0.53% fall in its price.

Philip Morris has been capitalizing on the growth potential of iQOS and plans to commercialize its expansion in additional cities in Italy and Japan by 4Q15.

Flows into investment-grade bond funds were negative for the week ended August 5—marking a second successive week of outflows.

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 […]

Price movement Reynolds American (RAI) has a market cap of $67.3 billion. It rose 14.0% to close at $53.78 per share on October 21, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 13.8%, 10.3%, and 19.6%, respectively, on the same day. RAI is trading 14.1% above its 20-day moving average, 11.2% […]

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.

DCMSX is an alternative mutual fund that has suffered due to its commodity real return strategy.

Behemoth tobacco companies Philip Morris (PM) and Altria (MO) might be getting back together after separating more than a decade ago.

Price movement Philip Morris International (PM) has a market cap of $159.0 billion. It fell 0.19% to close at $101.53 per share on September 23, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 2.7%, 1.4%, and 17.9%, respectively, on the same day. PM is trading 1.4% above its 20-day moving average, […]

Philip Morris’s future growth depends on investments in new capabilities, brands, distribution channels, technologies, and emerging and mature geographic markets.

Price movement Reynolds American (RAI) has a market cap of $66.3 billion. It fell 2.1% to close at $46.29 per share on October 19, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -1.7%, -2.9%, and 2.9%, respectively, on the same day. RAI is trading 2.2% below its 20-day moving average, 4.5% […]

Philip Morris International (PM) is set to announce its 2Q17 earnings before the market opens on July 20, 2017.

Cantillon’s 3.9% position in Ambev SA (ABEV) replaced the hedge fund’s 4.46% position in Companhia Bebidas (ABV) due to a stock swap merger deal in November.

Due to high visibility in Altria Group’s (MO) earnings, we have opted for a forward PE (price-to-earnings) ratio for our analysis.

MSC Industrial Direct (MSM) is a 1% position in Cantillon’s long portfolio. MSC Industrial Direct is a distributor of metalworking and maintenance as well as repair and operations (or MRO) supplies.

Philip Morris is planning to implement price increases in retail (XRT) markets that include Russia, Argentina, Germany, and Indonesia.

During the quarter, Altria Group (MO) posted a gross margin and operating margin of 60.6% and 49%, respectively.

Phillip Morris’s adjusted operating income margin increased 1.4% in 3Q15 and 1.6% for the nine months ending September 30, excluding negative currency impact changes and excise taxes.

For 3Q17, Philip Morris International (PM) posted a gross margin, an EBITDA (earnings before interest, tax, depreciation, and amortization) margin, and a net margin of 63.4%, 44.1%, and 26.4%, respectively.

During the next four quarters, analysts are expecting Altria Group (MO) to post EPS (earnings per share) of $3.37.

Philip Morris International (PM) is scheduled to post its fourth-quarter earnings results before the market opens on February 7.

Analysts’ expectations For the next four quarters, analysts expect Altria Group (MO) to post EPS (earnings per share) of $3.51, which represents 11.1% growth from the $3.16 seen in the last four quarters. Earnings growth Altria’s EPS growth is expected to be driven by revenue growth, net margin expansion, and share repurchases. For the next four […]

Net revenue for Philip Morris’s (PM) Asia region decreased 8.7% to ~$2 billion in 1Q16. This compares to $2.2 billion in 1Q15.

As of October 16, Philip Morris is trading at a higher valuation than the S&P 500 and the Dow Jones Industrial, with a 18.6x forward earnings PE multiple.

In the first three quarters of 2018, Altria Group (MO) posted adjusted EPS of $3.04, which represents growth of 22.6% from $2.48 in the corresponding three quarters of the previous year.

Altria Group (MO) posted its fourth-quarter earnings on January 31. During the quarter, the company’s EPS met analysts’ expectations.

For the next four quarters, analysts expect Philip Morris International (PM) to post net revenues of ~$30.7 billion.

Although Altria’s 1Q17 earnings and revenues were lower than analysts’ estimates, analysts raised the target price marginally from $73.2 to $73.6.

Altria posted a net revenue, excluding excise taxes, of $4.73 billion, which represents year-over-year growth of 0.1%.

In the third quarter, Philip Morris International (PM) posted revenue of $7.50 billion, outperforming analysts’ expectation of $7.17 billion.

In the fourth quarter, Philip Morris International (PM) posted revenue of $7.50 billion, outperforming analysts’ expectation of $7.39 billion.

Of the 19 analysts that cover Philip Morris, 47.4% are recommending a “buy,” 47.4% are recommending a “hold,” and 5.3% are recommending a “sell.”

Philip Morris International (PM) reported its second-quarter results today and lowered its 2018 EPS guidance.

Last week was strong in terms of issuance volumes in the primary capital markets. High-quality bond issuance touched $51.3 billion across 42 issues in the week ending November 7.

Philip Morris stock has risen as much as 3.2% in the pre-market session today as of 8:55 AM ET. The company posted its second-quarter results.

Analysts expect Altria to report revenues of $5.08 billion in the second quarter of 2020—a fall of 2.2% from $5.19 billion in the second quarter of 2019.

So far this year, Philip Morris (NYSE:PM) has lost 17.0% of its stock value. The stock has underperformed the broader equity markets.

On Tuesday, the FDA authorized Philip Morris’s IQOS, an electrically heated tobacco unit, to be marketed as a modified risk tobacco product.

Today, Gaurav Jain of Barclays downgraded Altria Group (NYSE:MO) from “overweight” to “equal weight.” He also lowered his target price from $50 to $43.

This year, Philip Morris stock has been subdued, losing 13.6% of its value. The company is set to report its second-quarter earnings on July 21.

So far this year, Philip Morris International (NYSE:PM) and Altria Group (NYSE:MO) have underperformed the broader equity markets.

Despite the impressive first-quarter performance, Philip Morris’s stock price has declined. As of May 7, the company was trading at $70.14.

Currently, 14 analysts cover Altria stock. Many analysts have a bullish view on the stock due to its higher dividend yield and lower valuation.

Philip Morris reported its earnings results for the first quarter of 2020. The company reported an adjusted EPS of $1.21 on revenues of $7.15 billion.

As of April 13, Philip Morris (NYSE:PM) was trading at 73.95—a fall of 11.3% since the announcement of its fourth-quarter earnings on February 6.

Investors should find safety in high-yielding dividend stocks amid the downturn. Altria and Philip Morris both deliver stable earnings and constant dividends.

On March 16, Morgan Stanley upgraded Altria Group (NYSE:MO) from “equal weight” to “overweight” with a target price of $49.

As of March 10, Philip Morris (PM) was trading at $84.73—a fall of 0.4% since the beginning of this year. PM has outperformed the broader equity market and its peers.

As of March 6, Altria Group (NYSE:MO) was trading at $42.15—a fall of 15.9% since the company reported its earnings for the fourth quarter of 2020 on January 30.

Today, Philip Morris reported its fourth-quarter earnings. For the quarter, the company posted an adjusted EPS of $1.22 on revenues of $7.71 billion.

Philip Morris will report its Q4 earnings before the market opens on Thursday. Analysts expect the company’s revenue to rise and its adjusted EPS to fall. 

Today, Altria Group reported its fourth-quarter earnings, which ended on December 31. For the quarter, the company reported revenue of $6.0 billion.

Altria (MO) stock has recovered recently and risen by about 8% in a month. However, the stock has underperformed peers and broader markets this year.

Most consumer stocks have outperformed the broader markets so far this year amid an improved macroeconomic backdrop and the industry’s defensive nature.

In addition to boosting dividends, many consumer stocks saw stellar growth in 2019. Most of these companies outperformed the benchmark index YTD.

In this morning’s edition of our daily market newsletter, Get Real, we looked at Trump’s new tariff targets, a 5G network launch, and turnaround hopes.

Citigroup has upgraded Altria and downgraded Philip Morris. It expects lower cigarette volume declines and has a favorable outlook on traditional tobacco.

At the end of the third quarter, Bristol-Myers Squibb, Celgene, Biogen, UnitedHealth, and Walmart (WMT) were Renaissance Technologies’ top five buys.

When Altria posted its earnings yesterday, things looked positive. However, after news about Juul Labs, MO stock lost momentum and closed 2.6% lower.

Altria (MO) posted better-than-expected third-quarter earnings results today. As expected, lower cigarette shipment volumes remained a drag.

The New York–based Cantillon Capital Management is a hedge fund manager founded in 2003 by William von Mueffling.