(Bloomberg) -- Philip Morris International Inc. said growth of IQOS heated-tobacco devices is being crimped by the global semiconductor shortage. The Marlboro maker also narrowed its full-year guidance.
- Adjusted earnings per share will range from $6.01 to $6.06 this year. The previous forecast was for $5.97 to $6.07.
- Adjusted earnings per share amounted to $1.58 in the third quarter. Analysts expected $1.56.
- The company forecast IQOS supply will remain tight into the first half of 2022.
- The constrained IQOS device supply is making it harder to gain new consumers to the cigarette alternative just when competition is heating up among tobacco companies. PMI said it expects to meet its 2021-2023 sales and earnings goals, though if shortages persist, 2022 organic growth could be below the targeted rates.
- The shortage, which the company sees as a temporary phenomenon, means PMI will focus more on selling replacement devices to existing IQOS users and less on seeking out new customers. Demand remains robust, and there were about 20.4 million users at the end of the third quarter.
- Better-than-expected cigarette shipments outside Europe and Southeast Asia boosted results and may help the company’s sales.
- The shares have climbed 18% this year. The stock was little changed in pre-market trading.
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