Philip Morris International publishes today mixed results which strongly react the markets. The action of the tobacco giant literally plunged in a matter of hours.
A LOSS OF 25 BILLION DOLLARS!
The US tobacco giant is disappointing with a turnover of 6,9 billion for the first quarter 2018 against 7,03 billion estimated. Investors were frightened and the stock already plummets by 17%, two hours after the opening of Wall Street, the biggest intraday decline in the stock since 2008.
This sharp drop is partly explained by the decline in demand for tobacco, particularly in Japan, where smokers seem more cautious about nicotine and its new substitutes. These pessimistic prospects lead to a sharp downward reaction of the markets.
Yet, adjusted earnings per share are two cents higher than analysts' expectations and reach 1 dollar per share. The company even put on a BPA around 5,3 dollars by the end of 2018.
The price thus thwarts all forecasts at a time when the indicators seemed to be green. Philip Morris is dragging his competitors into a dizzying fall, such as British American Tobacco, which lost nearly 6% during the day.
Source : Zonebourse.com
