Philip Morris International Inc. (NYSE:PM) last week cut its earnings and revenue outlook amid shrinking global demand for its cigarettes and alternatives.
MarketWatch has more details on the difficulties the tobacco giant is facing these days:
Philip Morris International Inc. lowered its forecast on earnings and sales as the company faces weaker-than-expected global demand for its cigarette-alternative IQOS device.
The maker of Marlboro cigarettes lowered its full-year profit guidance to between $5.02 and $5.12 a share, from its prior forecast of $5.25 and $5.40, taking into account the costs of its product and marketing initiatives in markets such as Japan.
Additionally, PM slashed its revenue growth outlook, adjusted for currency fluctuations, to 3% to 4%. That’s less than half of its prior view for 8% sales growth.
Cigarette shipments fell 1.5% in Q2 to to 190.7 billion units. On a positive note, e-cigarette shipments surged 73% to 11 billion units — but apparently not enough to inspire the company to maintain its outlook.
Philip Morris International Inc. shares closed at $84.31 on Friday, up $3.41 (+4.22%). Year-to-date, PM has declined -18.20%, versus a 5.70% rise in the benchmark S&P 500 index during the same period.