Philip Morris reaffirms FY19 reported diluted EPS guidance of at least $5.37
Philip Morris International CEO Andre Calantzopoulos, COO Jacek Olczak, and CFO Martin King addressed investors today at the Consumer Analyst Group of New York, or CAGNY, Conference. At the event, the company reaffirmed its 2019 reported diluted EPS guidance, announced on February 7, for 2019 full-year reported diluted earnings per share to be at least $5.37 versus $5.08 in 2018. Excluding an unfavorable currency impact, at then-prevailing rates, of approximately 14c per share, this forecast represents an increase of at least 8% versus adjusted diluted EPS of $5.10 in 2018. This forecast assumes a total cigarette and heated tobacco unit shipment volume decline for PMI of approximately 1.5%-2.0% versus an estimated total international industry volume decline, excluding China and the U.S., of approximately 2.5%-3.0%; Currency-neutral net revenue growth of at least 5.0%, which includes an adverse impact of approximately 0.6 points related to the move to highly inflationary accounting in Argentina resulting in the treatment of the U.S. dollar as the functional currency of the company's Argentinian affiliates; An increase in full-year reported operating income margin of at least one percentage point, ex-currency, compared to 2018; Operating cash flow of at least $10.0B, subject to year-end working capital requirements; Capital expenditures of approximately $1.1B; and no share repurchases. FY19 EPS consensus is $5.38.