Philip Morris Earnings Cheat Sheet: Margin Expands Boosted by Rising Revenue, Net Income Rises

S&P 500 (NYSE:SPY) component Philip Morris International Inc. (NYSE:PM) reported net income above Wall Street’s expectations for the second quarter. Philip Morris International, Inc. is the holding company whose subsidiaries and affiliates manufacture and sell cigarettes and other tobacco products in markets outside the U.S.

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Philip Morris International Earnings Cheat Sheet for the Second Quarter

Results: Net income for Philip Morris International Inc. rose to $2.41 billion ($1.35 per share) vs. $1.98 billion ($1.07 per share) in the same quarter a year earlier. This marks a rise of 21.5% from the year earlier quarter.

Revenue: Rose 16.4% to $20.23 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: PM reported adjusted net income of $1.34 per share. By that measure, the company beat the mean estimate of $1.21 per share. It beat the average revenue estimate of $7.8 billion.

Quoting Management: “Our strong second-quarter results are testament to our continued growth momentum, particularly in Asia, strong pricing in numerous key markets and our excellent executional capability, as exemplified by our performance in Japan,” said Louis C. Camilleri, Chairman and Chief Executive Officer. “Our progress is such that we are again raising our EPS guidance for 2011, reflecting our confidence in the future.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 12.7% and in the fourth quarter of the last fiscal year, the figure rose 15.1%.

Revenue has risen the past four quarters. Revenue increased 4.5% to $6.79 billion in the first quarter. The figure rose 4.8% in the fourth quarter of the last fiscal year from the year earlier and climbed 0.4% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 2 cents in the first quarter and by one cent in the fourth quarter of the last fiscal year.

Competitors to Watch: Altria Group, Inc. (NYSE:MO), Reynolds American, Inc. (NYSE:RAI), Lorillard Inc. (NYSE:LO), Vector Group Ltd. (NYSE:VGR), British American Tobacco (AMEX:BTI), Imperial Tobacco Group PLC (ITYBY), Star Scientific, Inc. (NASDAQ:CIGX), Alliance One Intl., Inc. (NYSE:AOI), and Universal Corporation (NYSE:UVV).

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(Source: Xignite Financials)