Philip Morris International Inc. PM is likely to register top and bottom-line growth when it reports fourth-quarter 2024 earnings on Feb. 6. The Zacks Consensus Estimate for revenues is pegged at $9.36 billion, implying a 3.5% increase from the prior-year quarter’s reported figure. 

The consensus mark for earnings has moved down by 2 cents in the past 30 days to $1.51 per share, though it suggests an increase of around 11% from the figure reported in the year-ago quarter. PM has a trailing four-quarter earnings surprise of 1.9%, on average.

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Things to Know About PM’s Upcoming Results

Philip Morris’ ability to leverage strong pricing has been a key driver of its revenue and operating income growth. Smokers’ propensity to absorb price increases, given the addictive nature of cigarettes, has enabled the company to sustain revenue growth. 

The company has also been benefiting from its significant strides toward a smoke-free future. Smoke-free products accounted for 38% of the company’s net revenues in the third quarter of 2024, reflecting the success of IQOS, its leading heat-not-burn device. Among other initiatives, Philip Morris became the majority owner of Swedish Match on Nov. 11, 2022, which has been delivering impressive performance due to ZYN. Smoke-free revenues for 2024 are expected to increase by double digits organically to nearly $15 billion. 

These upsides bode well for the quarter to be reported. The Zacks Consensus Estimate for total smoke-free product revenues (excluding Wellness and Healthcare) for the fourth quarter is pegged at $3,867 million, indicating an increase from $3,489 million recorded in the year-ago period. Apart from this, Philip Morris’ cost-saving measures and strategic initiatives to enhance its margins have been working well. 

However, volatile currency movements have been a concern for the tobacco giant. Philip Morris’ third-quarter 2024 financial performance was affected by currency fluctuations, particularly with weaknesses in the Egyptian Pound and Argentine Peso, alongside a strong Swiss Franc. On its last earnings call, management stated that it anticipates an ongoing unfavorable currency impact of 40 cents for the full year. Apart from this, strict government regulations, such as mandatory precautionary labels and self-critical advertisements, hinder cigarette consumption.

Earnings Whispers for PM Stock

Our proven model doesn’t conclusively predict an earnings beat for Philip Morris this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. 

Philip Morris carries a Zacks Rank #3 and has an Earnings ESP of -0.61%.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Some Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Kenvue Inc. KVUE currently has an Earnings ESP of +1.45% and a Zacks Rank of 3. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.78 billion, which indicates growth of 2.9% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Kenvue’s fourth-quarter 2024 EPS is pegged at 25 cents, which implies a 19.4% decrease year over year. KVUE has a trailing four-quarter earnings surprise of 10.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

$Aramark(ARMK-W)$ ARMK currently has an Earnings ESP of +5.53% and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports first-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Aramark’s quarterly revenues is pegged at $4.61 billion, which suggests an increase of 4.6% from the prior-year quarter.

The Zacks Consensus Estimate for Aramark’s quarterly earnings per share is pegged at 48 cents, indicating 17.1% growth from the year-ago period. ARMK has a trailing four-quarter earnings surprise of 8%, on average.

Clorox CLX currently has an Earnings ESP of +0.78% and a Zacks Rank of 3. The company is likely to register a decline in its top and bottom lines when it reports second-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $1.63 billion, which suggests a decrease of 17.8% from the prior-year quarter.

The Zacks Consensus Estimate for Clorox’s quarterly earnings per share is pegged at $1.39, indicating a 35.7% decline from the year-ago period. CLX has a trailing four-quarter earnings surprise of 45.9%, on average.

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