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Philip Morris International Inc. Just Beat EPS By 8.9%: Here's What Analysts Think Will Happen Next

Simply Wall St
·4 min read

Philip Morris International Inc. (NYSE:PM) just released its latest quarterly results and things are looking bullish. The company beat expectations with revenues of US$7.4b arriving 2.5% ahead of forecasts. Statutory earnings per share (EPS) were US$1.48, 8.9% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Philip Morris International

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earnings-and-revenue-growth

Taking into account the latest results, the current consensus from Philip Morris International's 16 analysts is for revenues of US$30.7b in 2021, which would reflect a satisfactory 6.2% increase on its sales over the past 12 months. Per-share earnings are expected to climb 14% to US$5.65. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$30.7b and earnings per share (EPS) of US$5.66 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of US$90.36, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Philip Morris International, with the most bullish analyst valuing it at US$100.00 and the most bearish at US$74.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Philip Morris International's past performance and to peers in the same industry. It's clear from the latest estimates that Philip Morris International's rate of growth is expected to accelerate meaningfully, with the forecast 6.2% revenue growth noticeably faster than its historical growth of 2.8%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.2% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Philip Morris International is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$90.36, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Philip Morris International going out to 2024, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for Philip Morris International that we have uncovered.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.