Philip Morris International (PM) shares tumbled 5.25% in pre-market trading on Tuesday following the release of its second-quarter earnings report. The tobacco giant's results revealed a mixed performance, with earnings beating expectations but revenue falling short of analyst estimates.
The company reported Q2 adjusted earnings of $1.91 per share, surpassing the consensus estimate of $1.86. This represented a 20.13% increase from the $1.59 per share reported in the same period last year. However, quarterly sales came in at $10.14 billion, missing the analyst consensus estimate of $10.32 billion by 1.76%, despite showing a 7.10% year-over-year increase.
Adding to investor concerns, Philip Morris provided weaker-than-expected guidance for the third quarter. The company forecasts Q3 adjusted earnings in the range of $2.08 to $2.13 per share, falling short of the FactSet consensus estimate of $2.14. This outlook, combined with the revenue miss, appears to have sparked the significant pre-market sell-off. The broader market context, including ongoing earnings season jitters and trade tension uncertainties, may have further amplified the negative sentiment towards the stock.