Philip Morris International Inc (NYSE:PM, ETR:4I1) posted a revenue miss for the second quarter as cigarette shipment volumes declined 1.5% year-over-year, sending its shares lower on Tuesday morning.
The Marlboro and Virginia Slims producer reported revenue of $10.14 billion, short of the Wall Street consensus of $10.28 billion.
Philip Morris’ smoke-free business made up 41% of total revenues, up 2.9 basis points compared to Q2 last year.
Earnings per share (EPS) surged 26.6% from the year-ago quarter to $1.91, above estimates of $1.86.
The company also raised its full-year profit guidance, now expecting EPS in the range of $7.24 to $7.56 from prior guidance of $7.32 to $7.44 and representing growth of 13% to 15%.
"Our business delivered very strong results in the second quarter, with record net revenues and exceptional growth in operating income and adjusted diluted EPS," Philip Morris CEO Jacek Olczak said in a statement.
"These results reflect excellent momentum in our multicategory smoke-free business, with a reacceleration of IQOS adjusted in-market sales growth and ZYN US offtake growth, coupled with combustibles resilience. Given our strong year-to-date performance, we are raising our full-year guidance."
Shares of Philip Morris traded down 7.1% at about $168 late morning on Tuesday.