Weak Demand Signals at Philip Morris (PM)

4 days ago

Carol Masser

"Okay. So, if we're staying on the like Americana theme, like you're in your pickup trucks smoking a cigarette, but maybe people in those pickup trucks are not smoking the cigarettes as much because Philip Morris, their stock fell today. Wall Street is skeptical of their fullear forecast. While the heated tobacco unit volumes were strong, cigarette volumes were slightly below estimates. Ultimately, the company lowered its estimate for growth and operating income due to higher investments in the US rolling out its Zen nicotine pouches, which seems to be dampening core cigarette demand."

The discussion regarding Philip Morris (PM) underscores concerns as the stock fell up to 10% during the session and finished down 3.8%. Despite a beat in heated tobacco unit volumes, the dip in cigarette volumes and a lowered forecast for growth due to investments in new nicotine pouches signal potential struggles in sustaining core demand.

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