Philip Morris International Inc. (NYSE: PM) shares continue to trade in a buy zone after the company reported strong fourth-quarter results last trading week.
The company’s management expects organic revenue growth in the 2022 fiscal year, and Bank of America assigned a buy rating on Philip Morris shares.
Outlook remains positive
Philip Morris reported fourth-quarter results on Feb. 10, 2022; total revenue has increased by 8.9% Y/Y to $8.1 billion, while the non-GAAP earnings per share were $1.35 (beats by $0.02).
Total revenue has increased above the expectations (+$350 million), and the company’s management expects the accelerating trends in the upcoming quarters.
Cigarette and heated tobacco unit shipment volume have increased by 4.2% during the quarter. It is also important to mention that revenues from smoke-free products accounted for 30.7% of total revenues.
The company’s management expects organic revenue growth in the 2022 fiscal year, while the adjusted earnings per share should be in the range of $6.57 to $6.75. Jacek Olczak, CEO of Philip Morris, added:
We enter 2022 with strong fundamentals, and we are forecasting organic top-line growth of 4% to 6% and currency-neutral adjusted diluted EPS growth of 8% to 11%, which prudently incorporate the continuing uncertainty on full IQOS device availability and the pace of the ongoing pandemic recovery.
Bank of America has a positive view of the shares of Philip Morris and reported that PM has one of the strongest growth profiles among its tobacco and staples peers.
Bank of America assigned a buy rating on Philip Morris shares with a $120 target price which implies more than 10% upside potential.
Philip Morris has a strong position in the market; the company pays
