Philip Morris’ third-quarter revenue and earnings were better than expected, and the number of iqos users reached 16.4 million
Thanks to an epidemic prevention company, Philip Morris International (NYSE: PM) performed better than expected in the third quarter of fiscal 2020.
In the quarter, the company’s results announced on Tuesday showed that net income was only $7.45 billion, a year-on-year decrease of 2.6%. Non-GAAP (adjusted) operating income rose slightly, increasing by 1.9% to $3.24 billion. According to the adjusted per share calculation, Philip Morris’s income during this period was $1.42.
Both headlines are much higher than analysts predicted. Forecasters tracking the stock estimated revenue of $7.28 billion and adjusted earnings per share of $1.36.
Since the company and its partner Altria Group finally launched IQOS in the United States in October last year, IQOS has been a hot project. Philip Morris estimates that as of the end of September 2020, the user base of the device is approximately 16.4 million. IQOS products accounted for nearly a quarter of the company’s third-quarter revenue.
Tobacco industry as a whole is in a good position
At the same time, the tobacco industry as a whole is in a good position relative to other types of enterprises. The global population (or, in many cases, strongly encouraged) stays at home and often has more time to smoke and other habits, which also supports the demand for its products.
At the same time, in the case of Philip Morris, most of its factories are still operating; the company stated that its traditional cigarette inventory and the components that make up its next-generation IQOS heating tobacco device are “sufficient… based on existing sales. trend.”
Philip Morris also put forward guidance for the whole year of 2020. The company believes that it will announce adjusted earnings per share from 5.05 yuan to 5.10 yuan, a slight drop from the previous year’s 5.13 yuan performance; analysts’ average estimate this year is 5.09 yuan. The company did not provide an estimate of revenue.