Yahoo Finance Philip Morris (PM) International Revenue in Focus: Trends and Expectations
Did you analyze how Philip Morris (PM) fared in its international operations for the quarter ending March 2024? Given the widespread global presence of this seller of Marlboro and other cigarette brands, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
While analyzing PM's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The recent quarter saw the company's total revenue reaching $8.79 billion, marking an improvement of 8.6% from the prior-year quarter. Next, we'll examine the breakdown of PM's revenue from abroad to comprehend the significance of its international presence.
Unveiling Trends in PM's International Revenues
SSEA, CIS & MEA generated $2.71 billion in revenues for the company in the last quarter, constituting 30.8% of the total. This represented a surprise of +0.61% compared to the $2.69 billion projected by Wall Street analysts. Comparatively, in the previous quarter, SSEA, CIS & MEA accounted for $2.78 billion (30.7%), and in the year-ago quarter, it contributed $924 million (11.4%) to the total revenue.
EA, AU & PMI DF accounted for 16.3% of the company's total revenue during the quarter, translating to $1.43 billion. Revenues from this region represented a surprise of -6.64%, with Wall Street analysts collectively expecting $1.53 billion. When compared to the preceding quarter and the same quarter in the previous year, EA, AU & PMI DF contributed $1.57 billion (17.4%) and $1.32 billion (16.3%) to the total revenue, respectively.
International Market Revenue Projections
For the current fiscal quarter, it is anticipated by Wall Street analysts that Philip Morris will report a total revenue of $9.13 billion, which reflects an increase of 1.9% from the same quarter in the previous year. The revenue contributions are expected to be 29% from SSEA, CIS & MEA ($2.65 billion) and 17.9% from EA, AU & PMI DF ($1.64 billion).
For the entire year, the company's total revenue is forecasted to be $36.84 billion, which is an improvement of 4.5% from the previous year. The revenue contributions from different regions are expected as follows: SSEA, CIS & MEA will contribute 29.6% ($10.92 billion) and EA, AU & PMI DF 17% ($6.26 billion) to the total revenue.
Concluding Remarks
Relying on global markets for revenues presents both prospects and challenges for Philip Morris. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.
With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.
We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
At present, Philip Morris holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Philip Morris' Recent Stock Market Performance
The stock has witnessed an increase of 4.9% over the past month versus the Zacks S&P 500 composite's a decrease of 3.2%. In the same interval, the Zacks Consumer Staples sector, to which Philip Morris belongs, has registered a decrease of 0.2%. Over the past three months, the company's shares saw an increase of 3%, while the S&P 500 increased by 3.5%. In comparison, the sector experienced an increase of 2.7% during this timeframe.
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Philip Morris International Inc. (PM) : Free Stock Analysis Report
