Philip Morris 2Q EPS Tops Views, Company Boosts 2025 EPS Projection

By Rob Curran

Philip Morris International's second-quarter earnings surpassed Wall Street expectations on higher revenue and the tobacco giant boosted its projection for 2025 growth, with fortunes lifted by the burgeoning popularity of its Zyn oral nicotine pouches.

The tobacco company, which sells cigarettes such as Marlboro, Parliament in overseas markets and smokeless tobacco such as Zyn worldwide, logged second-quarter earnings of $1.95 a share.

Stripping out certain one-off items, Philip Morris posted adjusted earnings of $1.91 a share, compared with the mean analyst target of $1.86 a share.

Revenue rose 7% to $10.1 billion, shy of the average Wall Street target of $10.32 billion, according to FactSet.

Shipment volumes for smoke-free products rose 12% in the three-month period.

Smoke-free, or smokeless tobacco products, represented 41% of its overall revenue, an increase of 2.9 percentage points from the same period a year earlier, the company said.

Heated tobacco and cigarette shipments are up 1.7% for the year to date, the company said.

Philip Morris boosted its 2025 earnings projection to a range between $7.24 and $7.37 a share. compared with its previous estimated range between $7.01 and $7.14 a share. On an adjusted basis, the tobacco giant targeted profit of $7.43 to $7.56 a share, up from its prior estimate of $7.36 to $7.49 a share.

Chief Executive Jacek Olczak cited a "reacceleration" of sales growth for the IQOS smoking device worldwide, and demand for Zyn pouches in the U.S. for much of the growth. In an informational article on its website, the American Lung Association said Zyn is particularly popular with young people.

Write to Rob Curran at rob.curran@dowjones.com