Philip Morris drops most since 2008 as revenue misses estimates

The stock of Philip Morris posted on Thursday its biggest drop in a decade after the tobacco giant reported revenue that missed estimates as well as a decline in cigarette volume and slower growth in its smokeless tobacco product.

The company’s shares plunged 16%, which was the biggest percentage decline since 2008, when Philip Morris split from Altria Group.

Cigarette shipment volume declined a worse-than-expected 5.3% during the first quarter, hit by decreases in Japan, Russia and Saudi Arabia, as The Wall Street Journal reported.

Ticker	Security	Last	Change	Change %
PM	PHILIP MORRIS INTERNATIONAL INC.	131.83	-0.45	-0.34%

The company’s hand-held IQOS device, which heats but doesn’t burn tobacco, added just 3 percentage points to cigarette volumes, almost half the level added in the previous quarter. Philip Morris has touted the smokeless tobacco product as an important part of its growth strategy.

Philip Morris reported on Thursday that it earned $1 a share on revenue of $6.9 billion, while analysts polled by Thomson Reuters expected 90 cents on revenue of $7.03 billion.