Philip Morris International Inc. (NYSE:PM) reported a significant increase in earnings per share (EPS) to $1.91, surpassing estimates.
The company’s revenue reached approximately $9.91 billion, indicating an 8.4% increase year-over-year.
Despite a negative debt-to-equity ratio, Philip Morris maintains a solid current ratio of 0.94, showcasing its financial stability.
Philip Morris International Inc. (NYSE:PM) is a leading player in the tobacco industry, known for its wide range of products, including the popular Marlboro brand. The company operates globally, focusing on the development and commercialization of smoke-free products. Philip Morris competes with other major tobacco companies like British American Tobacco and Japan Tobacco.
On October 22, 2024, Philip Morris reported its third-quarter earnings, showcasing a strong financial performance. The company achieved earnings per share (EPS) of $1.91, surpassing the estimated $1.82. This represents a significant increase from the $1.67 EPS recorded in the same quarter last year. The earnings surprise for this quarter stands at 4.37%, highlighting the company’s ability to exceed market expectations.
Philip Morris also reported revenue of approximately $9.91 billion for the quarter, exceeding the estimated $9.68 billion. This marks an 8.4% increase compared to the same period last year, as highlighted by Seeking Alpha. The revenue exceeded the Zacks Consensus Estimate of $9.57 billion by 3.55%. The company has consistently surpassed consensus revenue estimates in each of the last four quarters, demonstrating its strong market position.
The company’s financial metrics provide further insights into its performance. Philip Morris has a price-to-earnings (P/E) ratio of approximately 22.84, indicating the amount investors are willing to pay for each dollar of earnings. The price-to-sales ratio stands at about 5.52, reflecting the market’s valuation of its revenue. These figures suggest a positive market perception of the company’s financial health.
Despite a negative debt-to-equity ratio of -5.04, which may indicate a higher level of debt compared to equity, Philip Morris maintains a current ratio of 0.94. This suggests the company’s ability to cover its short-term liabilities with its short-term assets. With an earnings yield of 4.38%, Philip Morris provides a return on investment relative to its share price, offering investors a potentially attractive opportunity.