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Philip Morris International slides despite earnings beat as cracks start to show in Zyn business

The company reported its first quareterly decline in shipments of nicotine pouches.

J. Edward Moreno

Philip Morris International, the maker of Marlboro cigarettes and Zyn pouches, fell after reporting earnings results that beat analysts’ estimates but may sow worry about future growth in its smoke-free segment.

Shares were down 9% in early trading.

The company reported adjusted earnings per share of $1.91, more than the $1.86 analysts polled by FactSet were expecting. It also raised its full-year profit guidance to as much as $7.56 this year, up from its previous guidance of up to $7.49.

But it also reported $10.1 billion in sales, less than the $10.3 billion analysts were expecting. It also reported its first quarterly decline in shipments of its massively popular Zyn pouches. (Last quarter, it sold enough cans to span Route 66.)

Philip Morris’ smoke-free business now accounts for 41% of revenue, mostly thanks to Zyn. Its heated tobacco pen, IQOS, has also grown in popularity outside the US.

The company, along with its peers in tobacco, has outperformed major indexes this year as fears of tariffs and recession have roiled markets.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

  • Revenue of $11.0 billion (estimate: $10.8 billion).

  • Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

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