Philip Morris International Inc.(NYSE:PM, which makes the iconic Marlboro brand of cigarettes, is expected to register a slowdown in revenue growth in the third quarter, results of which will be announced on Thursday before the market opens.
The slowdown is in comparison to the volume gains that it saw last year.
The Street will be looking out for signs as to whether fewer cigarettes were sold due to tax hikes and controls on tobacco growth. There is a greater awareness of the health concerns from tobacco consumption in the form of cigarettes while more and more areas are being restricted for smokers, and higher taxes are imposed every year on the sale of cigarettes. All these measures have clamped down on smoking among Americans.
Philip Morris International has compensated for consumers buying fewer, or cheaper, cigarettes — and for the weak economy — by cutting costs and raising prices.
Cigarette shipments fell about 1 percent to 238.3 billion in the second quarter that ended in June, but its market share increased or remained stable in many key areas.
Analysts on average expect Philip Morris International to report adjusted earnings of $1.39 per share on revenue of $8.21 billion.
Last year Philip Morris International reported adjusted net income of $1.37 per share on revenue of $8.4 billion, excluding excise taxes.