Philip Morris International Inc. (PM – Free Report) once again disappointed investors, with both the top and bottom line missing the Zacks Consensus Estimate in fourth-quarter fiscal 2017. Notably, both earnings and revenues have missed the consensus mark for the fourth straight quarter. Moreover, the company provided fiscal 2018 view, which came in below the consensus estimate.

Quarter in Detail

Adjusted earnings of $1.31 per share missed the Zacks Consensus Estimate of $1.36. However, adjusted earnings in the reported quarter jumped 19.1% from the year-ago period.

Net revenue, excluding excise taxes, was $8,294 million, which increased 19% (up 18.8% excluding favorable currency of $14 million) in the fourth quarter. However, net revenues lagged the Zacks Consensus Estimate of $8,372 million. Favorable pricing and volume/mix in the quarter drove revenues. While, revenues increased in the European Union (EU), Asia, Latin America & Canada, the same declined in Eastern Europe, the Middle East & Africa (EEMA).

During the quarter, revenues from combustible products inched up 0.3% (down 0.8% excluding negative currency) to $6,651 million. Moreover, Reduced Risk Products (RRPs) reported a whopping increase from last-year quarter, driven by shift of customer preference away from tobacco products. The company generated revenues of $1,643 million from RRPs, significantly higher than $343 million reported last year.

Total cigarette and heated tobacco unit shipment volume rose 3.8% to 212.1 billion units. The figures were unfavorable in the EEMA and in Latin America & Canada mainly due to low cigarette shipment volumes. These were offset by increased volumes in Asia and EU, as well as higher heated tobacco unit shipment volume across all regions. While cigarette shipment volume declined 2.1% in the quarter, heated tobacco unit shipment volume of 15.7 billion units, increased significantly from 3.7 billion units recorded in fourth-quarter 2016.

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