Tobacco company Philip Morris shares rose more than 2%, trading up 0.1% on Thursday's trading, after the company surpassed analysts' estimates in the third quarter, with a limited drop in sales.
The company posted a net profit of $ 1.896 billion ($ 1.22 per share) in the third quarter, compared with $ 2.247 billion ($ 1.44 per share) in the same period last year. The adjusted earnings per share stood at $ 1.43 in Q3 2019, higher than analysts' expectations of $ 1.36.
[caption id="attachment_85459" align="aligncenter" width="608"]
Tobacco drying process in a Philip Morris factory[/caption]
The company's profit fell as marketing, management and development costs rose over 30 %, including a $ 374 million fee paid to a Russian company.
Philip Morris's revenue rose to $ 7.642 billion in Q3 2019 from $ 7.504 billion in the same period last year. Moreover, total cigarette sales fell nearly 3.4 % in the same quarter to $ 183.52 billion from $ 195.07 billion in the same period last year.
Meantime, heated tobacco unit shipment increased by 45.7 % to $ 15.98 billion from $ 8.65 billion in the same quarter a year earlier.
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Philip Morris factory in Romania[/caption]
According to the results, the company has revised downward its overall forecast with expected earnings per share at $ 4.73 compared with $ 4.94 previous estimates, and earnings per share at $ 5.14.
The company attributed the downgrade of its overall forecast to the impact of the dismantling of its Canadian subsidiary, Rothmans, Benson & Hedges.
Philip Morris ended yesterday's trading at $ 79.10, up 1 percent, and futures indicated it would start trading today with gains of up to 1.5 percent.
It is worth mentioning that Marlboro is one of the most recognized and best selling product of the US company.
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