Philip Morris International Inc. (PM) said Tuesday it had net income of $1.821 billion, or $1.17 a share, in the first quarter, up from $1.350 billion, or 87 cents a share, in the year-earlier period. Adjusted per-share earnings came to $1.21, ahead of the $1.13 FactSet consensus. Revenue rose 6% to $7.153 billion from $6.751 billion, also ahead of the FactSet consensus of $6.844 billion. The company is withdrawing the guidance for 2020 provided in February because of the uncertainty caused by the coronavirus pandemic, but said it expects second-quarter EPS of $1.00 to $1.10. Cigarette and heated tobacco unit shipment volume fell by 1.2% in the quarter. "We started the year with a very strong first quarter, reflecting continued structural growth momentum driven by our smoke-free portfolio and favorable combustible tobacco pricing," Chief Executive Andre Calantzopoulos said in a statement. "We experienced a limited impact on our performance from the early stages of the COVID-19 pandemic, as the onset of government restrictions related to social distancing and travel were generally only implemented in our key markets over the course of March." The Marlboro maker is expecting the pandemic to adversely impact full-year earnings, after a steep decline in duty-free sales, slower user acquisition to new IQOS products and delayed minimum price enforcement in Indonesia, he said. "We also have to assume that, in certain markets, unemployment and related reductions in disposable income will have a temporary impact on market dynamics or the ability of certain small retailers to operate," said the statement. Shares rose 0.8% premarket but are down 8% in the year to date, while the S&P 500 has fallen 11%.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
April 21, 2020 07:16 ET (11:16 GMT)
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