Strong Q. Increasing dividend, $1.5B in share repurchases, 18% eps growth (ex currency) and full year forecast raised.
Now, admittedly we cannot just exclude currency and ignore its effect on earnings. It is a part of the equation and goes to reported results. BUT, since currency will vary wildly quarter to quarter, we have to look at results excluding it to get a true picture of the health of the underlying business. Reported results are what they are, but the results excluding currency variations give us the true picture of what the business is doing.
Yes, volumes were lower but this was expected both to the economic environment and pricing actions taken by the company during the quarter. The good news here is that as global economies improve, volume will return and in the cigarette industry, price increase stick meaning earnings will be further bolstered.
These results strengthen the investing thesis in Phillip Morris International (PM).
Here is the 8-K
