The Philip Morris International logo
Daniel Acker/Bloomberg
Shares of Philip Morris fall Tuesday after the tobacco company reported earnings that topped analysts’ expectations but said its ability to meet demands for its IQOS heated-tobacco devices was being impacted by the global chip shortage.
Philip Morris (ticker: PM) earned an adjusted $1.58 a share in the third quarter on a revenue jump of 9.1% to $8.12 billion.
Analysts surveyed by FactSet expected Philip Morris to post profit of $1.56 a share on revenue of $7.94 billion. A year earlier, the maker of Marlboro cigarettes earned $1.42 a share on revenue of $7.45 billion.
Cigarette and heated tobacco unit shipment volume rose 2.1% in the quarter, Philip Morris said. Breaking it down: cigarette shipment volume fell 0.4%, while heated tobacco unit shipment volume gained 23.8%.
The company forecast adjusted per-share earnings for 2021 toward the upper-half of its previous range, “despite ongoing tightness in device supplies due to the global shortage of semiconductors, which impacts our ability to fulfill consumer demand for IQOS.”
“We confirm our confidence in our 2021 to 2023 growth targets, despite device constraints that could persist into the first half of 2022, with temporarily lower IQOS user growth rates,” Philip Morris added.
The stock declined 1.21% to $96.27 in premarket trading.
Write to Joe Woelfel at [email protected]
