Philip Morris International slides despite earnings beat as cracks start to show in Zyn business
The company reported its first quareterly decline in shipments of nicotine pouches.
Philip Morris International, the maker of Marlboro cigarettes and Zyn pouches, fell after reporting earnings results that beat analysts’ estimates but may sow worry about future growth in its smoke-free segment.
Shares were down 9% in early trading.
The company reported adjusted earnings per share of $1.91, more than the $1.86 analysts polled by FactSet were expecting. It also raised its full-year profit guidance to as much as $7.56 this year, up from its previous guidance of up to $7.49.
But it also reported $10.1 billion in sales, less than the $10.3 billion analysts were expecting. It also reported its first quarterly decline in shipments of its massively popular Zyn pouches. (Last quarter, it sold enough cans to span Route 66.)
Philip Morris’ smoke-free business now accounts for 41% of revenue, mostly thanks to Zyn. Its heated tobacco pen, IQOS, has also grown in popularity outside the US.
The company, along with its peers in tobacco, has outperformed major indexes this year as fears of tariffs and recession have roiled markets.
