Philip Morris International Inc. (NYSE:PM) stock rose 0.88% (As on Oct 20, 11:49:34 AM UTC-4, Source: Google Finance) after the company posted better than expected result for the third quarter of FY 21 but narrows the guidance for diluted EPS.

PM in the third quarter of FY 21 has reported the adjusted earnings per share of $1.58, beating the analysts’ estimates for the adjusted earnings per share of $1.54, according to Zacks Investment Research. The company had reported the adjusted revenue of $8.12 billion in the third quarter of FY 21, beating the analysts’ estimates for revenue of $7.88 billion.

Philip Morris has revised and narrowed its full-year 2021 reported diluted EPS forecast to a range of $5.77 to $5.82, at prevailing exchange rates, from a range of $5.76 to $5.86 previously. This is on back of Asset impairment and exit costs of $0.09 per share, compared to $0.07 per share previously, due to organizational design optimization and product distribution restructuring in South Korea, asset acquisition cost of $0.03 per share, due to a $51 million pre-tax charge related to the purchase of OtiTopic, a favorable impact related to equity ownership dilution in Medicago, Inc. of $0.02 per share, following PMI’s ownership reduction in July 2021 to approximately 25%, from approximately 32% previously; and a favorable currency impact of $0.17 at prevailing exchange rates, compared to $0.18 per share, previously.

For full year 2021, the company expects adjusted net revenue growth of approximately 6.5% to 7% on an organic basis, compared to a range of 6% to 7%, previously, an increase in adjusted operating income margin of around 200 basis points on an organic basis, incremental commercial investments in the second half of 2021 of approximately $300 million versus the first half, compared to a range of approximately $300 to $400 million, previously, operating cash flow of around $11 billion at prevailing exchange rates and subject to year-end working capital requirements and capital expenditures of approximately $0.6 billion, compared to approximately $0.8 billion, previously.

For 2021, the company anticipates a continued gradual improvement in the general operating environment, with potential volatility around the duration and effects of pandemic-related mobility restrictions across PMI’s key markets. There is an expectation of constrained IQOS device supply due to the ongoing global semiconductor shortage, with reduced device assortment and availability, and therefore lower IQOS user growth rates as PMI prioritizes devices for existing IQOS users; 2021 ILUMA launches in certain markets now planned for the second half of 2022.