Philip Morris International Disappoints as Currency Headwinds Return
As a global business, Philip Morris International (NYSE: PM) gets much of its revenue in foreign currency, and the strong dollar over the past several years has eaten into the tobacco giant's financial results. So far in 2017, though, key currencies like the euro have finally gained ground against the dollar, and that seemed to bode well for Philip Morris' prospects coming into Thursday's second-quarter financial report.
The reality was extremely disappointing given those higher expectations, as Philip Morris suffered outright declines on its bottom line amid continued weakness in shipment volumes. The tobacco giant is still optimistic about its organic growth prospects, but its beliefs about adverse currency conditions for the remainder of the year led it to cut its guidance for the full 2017 year. Let's take a closer look at Philip Morris International and what it said about its future.
Image source: Philip Morris International.
Source: Fool.com
Philip Morris International Stock
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With a target price of 104 € there is a slightly positive potential of 10.9% for Philip Morris International compared to the current price of 93.78 €.
