Philip Morris International Inc.
) is set to report first-quarter fiscal 2014 results on Apr 17.
Last quarter, the company delivered in-line results. Let us see
how things are shaping up for this announcement.
Factors to be Considered this Quarter
Philip Morris International has been reporting decent earnings
results for the past few quarters backed by positive pricing. Its
impressive brand portfolio of tobacco and wine products helps it
to maintain a strong business momentum.
However, unfavorable currency translations have been hurting
the company's top line negatively for the past few quarters.
Management expects higher currency headwinds in 2014.
Cigarette shipment volumes are being affected negatively for
the past few quarters as there is a general shift of demand away
from conventional tobacco consumption to alternative less harmful
This is due to the difficult industrial conditions in the
tobacco industry due to declining demand resulting from the
ongoing anti-tobacco campaigns. Governments around the world are
hiking excise taxes on cigarettes and imposing packaging and
advertising restrictions on cigarette makers.
In Nov 2013, Philip Morris International announced that it is
going to foray into the e-cigarette category. However, probable
ban on e-cigarettes by the U.S. Food and Drug Administration may
affect e-cigarette sales in the coming quarter.
Our proven model does not conclusively show that Philip Morris
International is likely to beat earnings this quarter. A stock
needs to have both a positive
and a Zacks Rank #1, 2 or 3 to surpass earnings estimate.
However, that is not the case here due to the following
ESP for Philip Morris is 0.00%.
Philip Morris has a
Zacks Rank #4 (Sell). We caution against stocks with Zacks Ranks
#4 and 5 (Sell-rated stocks) going into the earnings
announcement, especially when the company is seeing negative
estimate revisions momentum.
Other Stocks to Consider
Here are some other companies that investors may want to
consider as our model shows that they have the right combination
of elements to post an earnings beat this quarter:
Coca Cola Enterprises Inc.
), with Earnings ESP of +2.27% and a Zacks Rank #2 (Buy).
), with Earnings ESP of +4.08% and a Zacks Rank #3 (Hold).
Hyatt Hotels Corporation
), with Earnings ESP of +9.09% and a Zacks Rank #3.
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COCA-COLA ENTRP (CCE): Free Stock Analysis
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PHILIP MORRIS (PM): Free Stock Analysis
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