NEW YORK (AP) — Philip Morris’ third-quarter adjusted profit and revenue topped analysts’ estimates, bolstered in part by increased cigarette prices.
The seller of Marlboro and other cigarette brands outside the United States also narrowed its full-year earnings forecast on Thursday.
Quarterly revenue, excluding excise taxes, dropped 12 percent to $6.93 billion thanks to unfavorable foreign currency translation. The results still beat Wall Street’s view.
Four analysts surveyed by Zacks expected revenue of $6.75 billion.
Since Philip Morris does all of its business overseas, the New York company has to navigate changes in currency values. A stronger dollar cuts into revenue generated overseas when it’s translated back into dollars.
CEO Andre Calantzopoulos said in a written statement that higher prices helped the quarter’s performance, while economic conditions improved, particularly in the European Union and Eastern Europe, the Middle East and Africa.
Cigarette shipment volume fell 1.5 percent to 218.9 billion units, excluding acquisitions. Philip Morris said that this was primarily due to Asia, mainly Indonesia, Japan and Pakistan.
Marlboro cigarette shipment volume rose 2.1 percent on growth in the European Union, Asia, Eastern Europe, the Middle East and Africa.
For the period ended Sept. 30, Philip Morris International Inc. earned $1.94 billion, or $1.25 per share. That compares with $2.16 billion, or $1.38 per share, a year ago.
Excluding pretax gains, earnings were $1.24 per share.
The results surpassed analysts’ expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $1.11 per share.
The company now foresees full-year earnings in a range of $4.35 to $4.40 per share. Its prior outlook was for $4.32 to $4.42 per share. Analysts polled by FactSet predict earnings of $4.38 per share
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