Analyst: Philip Morris 1Q May Miss, Shares Fall

Source from:  Associated Press 04/16/2010

Shares of Philip Morris International Inc. fell on Wednesday after an analyst said the company could miss first quarter estimates when it reports results next week. Shares of the tobacco maker fell $1.50, or 2.9 percent, to $50.96 in afternoon trading Wednesday. Citi analyst Adam Spielman said there is a "decent chance" the company could miss analysts' prediction of earnings per share of 93 cents by "a small amount." The miss would be the first one for the company since it was spun off in 2008 from Richmond, Va.-based Altria Group Inc., owner of Philip Morris USA. He said shares could be weak after results are announced on April 22 because the stock has been outperforming others in its sphere so far this year. Spielman expects the company earned 92 cents a share in the quarter, though he said the results will depend on pricing in Russia and other areas where there is little public information available into the market there. Currency fluctuations, which are hard to predict, can also influence results, he told clients in a note. The analyst said he expects weak volume again, falling 3 percent, with particularly weak sales in Western Europe. Spielman said long-term he remains confident in the company, and maintains his $65 target share price. Enditem