Philip Morris International's stock soared 5.02% in pre-market trading on Wednesday, following the release of its first-quarter financial results and positive regulatory news.
The tobacco giant reported adjusted earnings of $1.96 per share for Q1, beating analyst estimates of $1.83. Revenue rose 9.1% to $10.15 billion, also surpassing expectations of $9.91 billion. The company attributed the strong performance to significant growth in its international smoke-free business, led by its IQOS heated tobacco device, which saw double-digit shipment volume gains. This growth helped offset weaker performance in the U.S. market.
Further bolstering investor sentiment was the U.S. Food and Drug Administration's re-authorization of IQOS as a modified risk tobacco product, covering the IQOS 2.4, IQOS 3.0, and Heets tobacco stick series. This regulatory endorsement strengthens the commercial outlook for Philip Morris's smoke-free portfolio. Additionally, the company provided full-year adjusted EPS guidance of $8.36 to $8.51, aligning with analyst expectations, and noted it does not assume a prolonged impact from Middle East conflicts on its business.
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