By Dean Seal
Philip Morris International's stock is at an all time high after the company raised guidance and said the sustained popularity of its Zyn nicotine pouches boosted first-quarter earnings.
The tobacco company said Wednesday that it expects a bigger adjusted profit this year as shipments continue to rise for its smoke-free business, including the Zyn brand. Even volumes in its combustibles segment improved, the company said, adding that it has decided not to sell or separate its U.S. cigars business.
The stock rose 4.6% to a record high of $171.63 in early trading. Shares have gained 40% since the start of the year.
The company, which has distributed Marlboro cigarettes overseas since its spinoff from domestic Marlboro seller Altria Group in 2008, is now guiding for adjusted earnings of $7.36 to $7.49 a share for 2025. That's up from its previous guidance for $7.04 to $7.17 a share.
Chief Executive Jacek Olczak said management is confident the company can keep surpassing expectations "despite an uncertain and volatile global economic environment."
For the first three months of the year, the company recorded a quarterly operating profit of $3.5 billion, up 16% from a year earlier.
Earnings were $1.72 a share, or $1.69 a share when adjusted for one-time items. Analysts polled by FactSet had been expecting adjusted earnings of $1.61 a share.
Revenue rose 5.8% to $9.3 billion, topping analyst projections for $9.14 billion, according to FactSet. Higher prices and volumes combined to drive the top line higher.
Shipment volumes for nicotine pouches were up 27%, with the company's Zyn pouches fueling most of that growth.
Shipments of Zyn topped 200 million cans, 53% higher year-over-year and blasting past the company's initial expectations as it brought more production capacity online.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
04-23-25 1035ET
