Shares of tobacco company Philip Morris (NYSE:PM) are up today after it reported earnings for its first quarter of Fiscal Year 2024. Adjusted earnings per share came in at $1.50, which beat analysts’ consensus estimate of $1.41 per share.
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Furthermore, sales increased by 9.7% year-over-year, with revenue hitting $8.8 billion. This was $350 million above expectations.
Looking forward, management now expects adjusted EPS for FY 2024 to be in the range of $6.19 to $6.31. For reference, analysts were expecting an EPS figure of $6.33. In addition, organic revenue growth is expected to be between 7% and 8.5% year-over-year versus estimates of 5.28%.
Is PM Stock a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on PM stock based on seven Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 3% increase in its share price over the past year, the average PM price target of $102.50 per share implies 6.74% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
PM also pays out a quarterly dividend, which yields 5.82%. This is above its sector average of 2.125%.
Is PM the Right Stock to Buy for Passive Income?
Before you hurry to invest in PM, think about the following:
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