Philip Morris Adjusts Profit Forecast Amid Nicotine Pouch Challenges
US Stocks: Philip Morris trims annual profit forecast amid nicotine pouch uncertainty
The Economic TimesImage: The Economic Times
Philip Morris International has reduced its annual profit forecast due to regulatory uncertainties surrounding its Zyn nicotine pouches and increased competition in the tobacco market. Despite this, the company's shares rose nearly 3% after reporting better-than-expected first-quarter sales and profit figures.
- 01Philip Morris cut its annual profit forecast amid regulatory challenges.
- 02The company's shares rose nearly 3% despite the forecast reduction.
- 03First-quarter revenue reached $10.15 billion, exceeding expectations.
- 04Zyn nicotine pouch shipments in the U.S. fell 23.5%.
- 05The company expects adjusted earnings per share between $8.36 and $8.51.
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Philip Morris International, known for selling Marlboro cigarettes outside the U.S., has revised its annual profit forecast downwards due to regulatory uncertainties regarding its Zyn nicotine pouches and increased competition from brands like British American Tobacco's Velo. Despite this forecast adjustment, the company's shares rose nearly 3% in premarket trading after it reported first-quarter revenue of $10.15 billion, surpassing analysts' expectations of $9.91 billion. The adjusted profit for the quarter was $1.96 per share, beating estimates of $1.83. However, Zyn shipment volumes in the U.S. dropped by 23.5%, reflecting challenges in the market. Philip Morris anticipates full-year adjusted earnings per share to be between $8.36 and $8.51, slightly above analyst expectations, while also considering a minor impact from the ongoing conflict in the Middle East.
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