Philip Morris International Updates FY26 Earnings Guidance

Philip Morris International (NYSE:PM) announced an update to its earnings guidance for the fiscal year 2026. The company has projected its earnings per share (EPS) to be between $7.26 and $7.39. This new guidance is below the consensus estimate of $7.79, reflecting a cautious approach in the current market environment.

Performance of Philip Morris International Stock

On the day of the announcement, shares of Philip Morris International experienced a slight uptick, increasing by $0.41 to reach a price of $149.21. Trading volume was noted at 3,954,895 shares, while the average daily volume stands at 5,528,442 shares. Over the past fifty days, the stock has shown a moving average price of $128.31, and the 200-day moving average is at $125.73. Over the last year, the stock price has fluctuated, with a low of $87.82 and a high of $151.22. Currently, Philip Morris International has a market capitalization of approximately $232 billion, a price-to-earnings (P/E) ratio of 33.05, and a price-to-earnings-growth (PEG) ratio of 2.63. The beta value for the stock is noted at 0.55, indicating lower volatility compared to the market.

Recent Earnings Report and Dividend Announcement

In the last quarterly earnings report released on February 6, Philip Morris International posted an EPS of $1.55, surpassing the analysts' expectations of $1.49 by $0.06. The company's net margin stood at 7.89%, although it recorded a negative return on equity of 120.08%. Analysts predict that Philip Morris will achieve an EPS of $7.13 for the current fiscal year.

The company also declared a quarterly dividend, which was distributed on January 13. Shareholders who were on record as of December 26 received a dividend payment of $1.35 per share. This corresponds to an annualized dividend of $5.40, yielding approximately 3.62%. Notably, the dividend has a payout ratio of 119.73%, indicating that the company is returning a significant portion of its earnings to shareholders.

Analyst Ratings and Price Targets

Several brokerage firms have recently revised their price targets for Philip Morris International's shares. JPMorgan Chase & Co. upgraded their target from $145.00 to $160.00 and maintained an "overweight" rating on the stock. In contrast, StockNews.com downgraded their rating from "buy" to "hold". Similarly, Barclays adjusted their price target from $155.00 down to $145.00, while UBS Group raised their target from $105.00 to $120.00, assigning a "sell" rating. Stifel Nicolaus also raised their target price to $160.00 with a "buy" recommendation. Overall, the stock has received mixed ratings with one analyst suggesting a sale, two analysts recommending a hold, and eight suggesting a buy. The average analyst rating remains a "Moderate Buy" with a target price averaging $141.22.

Insider Trading Activities

In related news, Reginaldo Dobrowolski, a Vice President at Philip Morris International, sold 5,000 shares of the company on February 12 at an average price of $149.88. This sale totaled about $749,400, leading to a 19.38% reduction in his holdings; he now owns approximately 20,799 shares valued at $3,117,354. The proportion of the stock held by corporate insiders currently stands at around 0.14%.

Company Overview

Philip Morris International Inc. is a leading global tobacco company that aims to create a smoke-free future. The company’s portfolio includes traditional cigarettes as well as smoke-free alternatives, such as heat-not-burn and vapor products, mostly marketed under the IQOS and ZYN brands. In addition, the company offers consumer accessories like lighters and matches.

Earnings, Stocks, Guidance