The tobacco titan saw more than $6.5bn wiped off its market value after its first quarter report fell short of expectations.
Editor’s Remarks: The world’s largest publicly listed tobacco company saw disappointing figures, including a 0.3% fall in net revenues (excluding excise taxes) to $6.06bn during the first three months of the year – well short of analysts’ average expectations of a rise to $6.47bn – sending its shares down 3.7% by the end of the day. Philip Morris’ sales have been hit in recent years as more and more smokers stub out their habits, particularly with the rise of vaping, illustrated by the 11.5% slump in cigarette shipment PMIs this quarter. Big Tobacco is well aware of the falling trend though, so much of Philip Morris’ bad surprise may be down to a strong dollar hitting the US-based company’s revenues.
What to watch: Philip Morris, Imperial Brands, British American Tobacco