Philip Morris backs full-year EPS guidance but says chip shortage hurting IQOS business

Philip Morris International Inc. shares

slid 0.7% in premarket trade Wednesday, after the Marlboro maker reaffirmed per-share earnings guidance for 2021, but said the global chip shortage is hurting its IQOS heated tobacco product. In a statement released ahead of a presentation at the Barclays Global Consumer Staples Conference, Chief Financial Officer Emmanuel Bateau said the company is still expecting full-year EPS to range from $5.76 to $5.86, and for adjusted EPS to range from $5.97 to $6.07. The FactSet consensus is for EPS of $6.10. “While the increased impact of the global semiconductor shortage is currently limiting our ability to realize the full potential of IQOS, the underlying momentum of the brand is clear — as evidenced by the positive early results for IQOS ILUMA in Japan following the launch last month,” Babeau said. The company is now expecting full-year heated tobacco unit shipment volume to to come in toward the low end of its 95-to-100-billion-unit range, if shortages persist, and for third-quarter heated tobacco unit shipment volume to range from 23 to 24 billion units. Shares have gained 28% in the year to date, while the S&P 500

has gained 20.3%.

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