PMI shares fall 7% on revenue miss
Philip Morris International (PMI) shares slid 7% on Tuesday after the company's second-quarter sales didn't quite meet Wall Street's hopes—$10.14 billion versus the expected $10.33 billion.
The main reason? Fewer ZYN nicotine pouches shipped than anticipated, with 190 million cans going out instead of the projected 203 million.
PMI raises full-year profit outlook
Even as cigarette sales dipped, PMI's nicotine pouch business jumped nearly 24%, and its IQOS heated tobacco products are catching on in places like Europe, Japan, Jakarta, Mexico, and Seoul.
Despite the revenue miss, PMI actually beat profit expectations for the quarter and even raised its full-year outlook, betting big on its growing lineup of smoke-free alternatives as traditional cigarette use keeps shrinking.