- Summary
- Philip Morris International kicked off 2019 with first-quarter earnings.
- While the company's full-year guidance narrowly missed estimates, the company saw positive volume growth - driven by IQOS.
- Despite a run on shares, the stock remains fairly valued. The company's large dividend and pricing power fueled earnings growth, making it attractive at these levels.
International tobacco giant Philip Morris International (PM) kicked off its fiscal year 2019 with first-quarter earnings on Thursday. While management's earnings guidance for 2019 came in a hair below analysts' estimates, there are a number of positive developments that continue to build a case for long-term investors. Philip Morris' IQOS continues to gain strength, which bodes well for the company as it strives to evolve its business model over the long run to "reduced risk" products. Despite a lofty run on shares since January, the stock remains reasonably priced for shareholders looking to capture the outsized dividends and steady earnings growth that Philip Morris can offer to investors.
IQOS Progress
Philip Morris released its first-quarter results for 2019 on Thursday. Among the results that stuck out to us was strong volume output with support from continued growth in IQOS.
Source: Philip Morris International
