BTAFF - Philip Morris: 6% Correction After Q3 Results Was An Over-Reaction

• The 5.8% fall in Philip Morris' share price after Q3 results on Tuesday was an over-reaction, partly due to some reported figures looking mixed.
• Year-on-year revenue decline was due to temporary issues like the lack of Duty Free sales during COVID-19; underlying trends were mostly solid.
• EPS was up, thanks to margin expansion, mostly from repeatable heat-not-burn growth and combustible pricing, and lasting efficiency savings.
• IQOS showed strong sequential volume growth in most markets, though market share figures were distorted by higher cigarette volumes.
• At $73.33, shares can deliver a 56% total return (15.9% annualised, including a 6.5% dividend yield) in just over 3 years. Buy.

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