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>>> Philip Morris Raises Bottom of Earnings Estimate, Boosts Dividend


Philip Morris raises the bottom of its estimated earnings range for 2020 and increases its quarterly dividend.


The Street

by DAN WEIL

SEP 10, 2020


https://www.thestreet.com/investing/philip-morris-pm-stock-earnings-estimate-dividend?puc=yahoo&cm_ven=YAHOO&yptr=yahoo


Shares of Philip Morris International (PM) eased Thursday, even after the tobacco giant raised the bottom of its estimated earnings range for full-year 2020 and increased its quarterly dividend.

The company revised its GAAP earnings per share forecast to a range of $4.92 to $4.99, at prevailing exchange rates, compared to its prior forecast range of $4.84 to $4.99, which was provided on July 21.

“This primarily reflects the expectation of a stronger-than-anticipated performance in the third quarter,” the company said in a statement.

“Excluding an unfavorable currency impact, at prevailing exchange rates, of approximately $0.31 per share, asset impairment and exit costs of $0.04 per share, and a fair value adjustment for equity security investments of $0.04 per share, this forecast represents a projected increase of approximately 3.5% to 5.0% versus pro forma adjusted diluted EPS of $5.13 in 2019,” the company said.

In addition, “excluding an unfavorable currency impact, at prevailing exchange rates, of approximately 7 cents per share, PMI now expects third-quarter reported diluted EPS to be broadly in line with the company’s third-quarter 2019 adjusted diluted EPS of $1.43,” the company said.

As for the dividend, which will be paid Oct. 13, to shareholders of record as of Sept. 24, it was boosted 2.6% to $1.20 a share from $1.17.

Looking at second-quarter earnings, they were “fairly strong,” Morningstar analyst Philip Gorham wrote in July. He put fair value for the stock at $98.

Philip Morris recently traded at $80.12, down 0.43%. The stock has slipped 6% year to date, while the S&P 500 has risen 6%.

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