, Columnist
Philip Morris Deserves Its Reality Check
Its growth prospects arguably didn't justify a premium multiple.
This article is for subscribers only.
Philip Morris International Inc.'s shareholders needed a dose of reality.
The cigarette maker plunged as much as 18 percent on Thursday after reporting a slowdown in sales growth for its iQos devices that heat rather than burn tobacco. Particularly troubling was management's commentary on the conference call indicating that demand from Japan, a key market for so-called reduced-risk products, was disappointing, says Bloomberg Intelligence analyst Ken Shea. Philip Morris and its rivals have been counting on alternative smoking gadgets to compensate for weakening demand for traditional cigarettes, and they've spent heavily to invest here.