Philip Morris to Outperform Sector, Poll Says

Source from:  TheStreet.com 11/03/2009

Cigarette makers are still struggling, with volumes for the sector declining by about 12% on average in the third quarter. Still, despite disappointing earnings results over the past two weeks, some companies have nonetheless raised their outlooks. While TheStreet users are doubtful good news for the sector is imminent, they chose Philip Morris International(PM Quote) as having the most potential for lighting up a sales gain first. It nabbed 44.5% of the vote. Philip Morris International said that selling cigarettes solely overseas has helped bolster its demand in the third-quarter, with volume slipping just 3%. While its profit slid 14% in the third-quarter, the company still upped its full-year outlook. Philip Morris International announced that it expects full-year earnings in the range of $3.20 to $3.25 a share, better than prior forecast of $3.10 to $3.20 a share. In a close second in the poll was Altria(MO Quote), with 42.8% of the vote. The maker of Marlboro and Parliament cigarettes also lifted the low-end of its full-year outlook. In its third-quarter, the company reported a 1.7% uptick in profit, beating Wall Street's consensus. Placing in a distant third in the poll was Reynolds American(RAI Quote), with 7.2% of the vote. While the maker of Camel and Pall Mall cigarettes saw its profit surge 72% in its third quarter, most of the gains were due to charges from trademark impairment and restructuring that dampened last year's results. Revenue sank 5% to $2.15 billion from $2.27 billion last year, while the company said shipment volume slid 11%, one of the biggest declines in the sector. Enditem