What is going on with PM?
Philip Morris International (PM) stock jumped today after its Chief Financial Officer, Emmanuel Babeau, announced that the company has revised the 2021 full-year reported diluted EPS forecast, for currency only, to a range of $5.74 to $5.79, or $5.98 to $6.03 on an adjusted basis.
The adjustment represents currency-neutral growth of 13% to 14%.
The announcement took place at the Morgan Stanley Virtual Global Consumer & Retail Conference, where Babeau addressed investors.
Shares of PM increased 2.36% to $87.97 as of Wednesday at 10:53 am.
What does this mean for Philip Morris?
Although PM's EPS adjustment brings their full-year total slightly below their initial assent in October, the figures will still amount to 13-14% of currency-neutral growth from the previous year.
The company made clear that the assumptions underlying its most recent forecast "remain unchanged" versus those communicated by the company in its previous earnings release.
The exception is that PMI now anticipates a favorable currency impact of $0.14 per share, at prevailing exchange rates, compared to $0.17 per share, previously.
Jacek Olczak, CEO, commented, “We are seeing strong IQOS momentum despite the ongoing impact of the semiconductor supply shortage and expect improved sequential IQOS user growth in the fourth quarter. Importantly, we remain confident in our 2021 to 2023 organic compound annual growth targets.”
PMI will provide its 2022 full-year diluted EPS forecast in February.
