Philip Morris International (PM) issued an upbeat full-year earnings outlook on Thursday as the tobacco company reported fourth-quarter results above market expectations amid robust demand for its smoke-free products and ZYN nicotine pouches.

Adjusted earnings are anticipated to come in between $7.04 and $7.17 per share for 2025, representing annual growth of 7.2% to 9.1%. The current consensus on FactSet is for non-GAAP EPS of $7. Net revenue is pegged to increase by 6% to 8% on an organic basis. The stock spiked 8.6% in Thursday trade.

The full-year guidance assumes an international industry volume decline of around 1% for cigarettes and heated tobacco products, or HTUs, excluding the US and China, according to the company. It forecasts overall cigarette and smoke-free product shipment volume growth of up to 2% for the current year, buoyed by smoke-free product volume gains of 12% to 14%.

"We delivered very strong full-year results driven by the continued growth of IQOS and ZYN in addition to a robust combustibles performance," Chief Executive Jacek Olczak said in a statement. "We are confident that our smoke-free transformation and unparalleled brand portfolio will continue to deliver excellent performance and create value for our shareholders in 2025 and for the long term."

The cigarette and vape maker posted adjusted EPS of $1.55 for the quarter ended Dec. 31, up from $1.36 the year before and ahead of the Street's view for $1.50. Revenue advanced to $9.71 billion from $9.05 billion, beating the average analyst estimate of $9.44 billion. On an organic basis, sales were up 7.3%.

Smoke-free net revenue and gross profit grew by 9.2% and about 15%, respectively, despite a tough comparison due to shipment phasing, according to the company. Combustible revenue and gross profit accelerated by 6% and 11%.

Philip Morris' total shipment volume increased by 2.3% to 193.1 billion units, led by a 22% increase in oral smoke-free products buoyed by ZYN nicotine pouch growth of 42% in the US. Cigarette shipment volume inclined 1.1% to 152.8 billion units, while heated tobacco volume advanced 5.1% to 35.7 billion units.

For the ongoing quarter, the company expects adjusted EPS of $1.58 to $1.63, including a foreign-exchange headwind of $0.04 at current rates. The Street is looking for $1.61.