Philip Morris' Q3 Earnings Coming Up: Here's What You Should Know

Philip Morris International Inc. PM is likely to register top and bottom-line growth when it reports third-quarter 2024 earnings on Oct. 22. The Zacks Consensus Estimate for net sales is pegged at $9.57 billion, suggesting an increase of 4.7% from the prior-year quarter’s reported figure. The consensus mark for third-quarter earnings has remained unchanged in the past 30 days at $1.83 per share, indicating a rise of 9.6% from the figure reported in the year-ago quarter. PM has a trailing four-quarter earnings surprise of 1.8%, on average. 

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Things to Consider About PM’s Upcoming Results

Philip Morris has been benefiting from its strong pricing power, which has aided its revenues and adjusted operating income even amid low cigarette volumes. Though higher pricing might lead to a possible decline in cigarette consumption, it is seen that smokers tend to absorb price increases owing to the addictive quality of cigarettes. 

Philip Morris’ transition toward smoke-free alternatives has been working well, given consumers’ rising health consciousness and inclination toward reduced-risk products. Smoke-free products generated 38.1% of the company’s net revenues in the second quarter of 2024. In the quarter, the company witnessed continued strength in IQOS performance. Within the smoke-free business, inhalable smoke-free products were driven by strength in IQOS, while oral SFP was fueled by increased shipment volumes of ZYN. Strength in these products is likely to have aided in the quarter under review.

High SG&A expenses are a concern for Philip Morris. With key commercial activities planned for the third quarter, SG&A expenses are expected to be high, posing a potential challenge. Apart from this, the company continues to encounter tobacco leaf inflation. 

However, Philip Morris’ saving measures are likely to have offered respite, as it expects accelerated savings in the second half of the year. On its last earnings call, management stated that it expects to witness a robust second-half performance, which encouraged it to raise its full-year 2024 guidance despite the adverse currency movements. These upsides bode well for the third quarter.

Earnings Whispers for Philip Morris

Our proven model doesn’t conclusively predict an earnings beat for Philip Morris this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. 

Philip Morris carries a Zacks Rank #2, while it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the correct combination to beat on earnings this time.

Clorox CLX currently has an Earnings ESP of +2.41% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports first-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $1.62 billion, which indicates an increase of 17.2% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Clorox’s quarterly earnings of $1.36 per share indicates growth of 177.6% from the year-ago quarter’s levels. CLX has a trailing four-quarter earnings surprise of 122.9%, on average.

Colgate-Palmolive CL currently has an Earnings ESP of +0.96% and a Zacks Rank #3. The company is expected to register top and bottom-line growth when it reports third-quarter 2024 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $5 billion, suggesting a rise of 1.9% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for quarterly earnings has remained unchanged at 88 cents per share in the past 30 days. The consensus mark for CL’s earnings indicates growth of 2.3% from the year-ago quarter’s reported number. CL delivered an earnings surprise of 4.8%, on average, in the trailing four quarters.

Monster Beverage MNST currently has an Earnings ESP of +0.13% and a Zacks Rank of 3. The company is expected to register top-and-bottom-line growth when it reports third-quarter 2024 results. Although the Zacks Consensus Estimate for MNST’s quarterly earnings has moved down by a penny in the past seven days to 42 cents per share, the projection indicates 2.4% growth from the year-ago quarter's reported number.

The Zacks Consensus Estimate for Monster Beverage’s quarterly revenues is pegged at $1.9 billion, suggesting a rise of 3.2% from the figure reported in the prior-year quarter. MNST reported a negative earnings surprise of 3.4%, on average, in the trailing four quarters.

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Philip Morris International Inc. (PM): Free Stock Analysis Report
 
Colgate-Palmolive Company (CL): Free Stock Analysis Report
 
The Clorox Company (CLX): Free Stock Analysis Report
 
Monster Beverage Corporation (MNST): Free Stock Analysis Report

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