Philip Morris: Lower Q2 Profits Top Estimates

by Christopher Freeburn | July 19, 2012 11:41 am

Philip Morris (NYSE:PM[1]) reported today that its net income for the second quarter[2] dipped 4% compared to last year, falling to $2.32 billion. Revenues slipped 2% compared to last year, falling to $8.1 billion. EPS for the second quarter came it at $1.36.

The results narrowly topped Wall Street, which had been looking for EPS of $1.35 on revenue of $8 billion, the Associated Press noted.

Philip Morris said that a rising U.S. dollar had trimmed profits from overseas sales during the quarter, but it reiterated its estimate of between $5.10 and $5.20 earnings per share for the year.

Cigarette shipments declined 1% during the quarter to 238.3 billion. Sales in Western Europe fell 9.4% and dipped 3% in the Americas, but rose 5% in the Middle East, Africa and Eastern Europe.

Philip Morris noted that it repurchased 17.8 million shares during the quarter at a cost of $1.5 billion. It will launch a three-year, $18 billion share repurchase program next month.

Shares of Philip Morris rose about 1% in Thursday midday trading.

Endnotes:

PM: http://studio-5.financialcontent.com/investplace/quote?Symbol=PM
its net income for the second quarter: http://www.washingtonpost.com/business/industries/philip-morris-intl-sells-fewer-cigarettes-in-2q-profit-falls-4-percent-despite-higher-prices/2012/07/19/gJQAzrCWvW_story.html

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