Mackenzie Tatananni

Philip Morris International stock climbed in premarket trading Thursday after the tobacco company provided strong earnings guidance that overshadowed the fourth-quarter report.

Shares were up 7.5% to $140.75 as Philip Morris reported fourth-quarter revenue of $9.7 billion, topping analysts' calls for $9.4 billion, according to FactSet, and representing 9.2% growth from the previous year.

The company posted a fourth-quarter loss of 38 cents a share, but excluding charges, adjustments, and net favorable exchange-rates, adjusted earnings per share were $1.49. Including the currency effect, earnings per share were $1.55. The analysts' consensus estimate was $1.50.

Philip Morris sees 2025 earnings per share of $7.26 to $7.39 (or $7.04 to $7.17, including the currency effect), with even the bottom range comfortably topping the $6.99 estimate. The outlook assumes a total international industry volume decline of around 1% for cigarettes and heated tobacco products, excluding the U.S. and China.

CEO Jacek Olczak said in the earnings release that the Food and Drug Administration's Jan. 16 authorization of Zyn nicotine pouches was evidence of the "compelling science" supporting smoke-free products. "We hope our other pending FDA applications will be accelerated," Olczak added.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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February 06, 2025 09:26 ET (14:26 GMT)

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