Tobacco and smoke-free products provider Philip Morris (NYSE:PM) has delivered stronger-than-expected second-quarter numbers with revenue rising 14.9% year-over-year to $9 billion. While the figure was ahead of expectations by $290 million, EPS at $1.60 too handily outperformed estimates by $0.10.
During the quarter, HTU (heated tobacco units) shipment volume rose by 26.6%, and oral product shipment volume surged by over 100%. Additionally, smoke-free products, which now make up about one-third of the total top line saw a 34.1% jump in net revenue.
On the back of robust fundamentals and easing inflationary and operational challenges, PM has also boosted its outlook for the full year 2023. Organic net revenue growth for the year is now anticipated between 7.5% and 8.5%. EPS is seen rising in the range of 8% and 9.5% between $6.46 and $6.55.
Importantly, with one eye on the future, the company is focusing on a smoke-free transformation alongside developing its wellness and healthcare offerings.
Overall, the Street has a $116.17 consensus price target on Philip Morris alongside a Strong Buy consensus rating. Shares of the company have gained nearly 8% over the past year.
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