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Update: Philip Morris - Operating Performance Stays Satisfactory

I reaffirm my stance that Philip Morris (PM) stays a good investment prospect for income-seeking investors, as it offers a high yield of 5.00%. As the tobacco industry has been undergoing structural changes, the company has been taking aggressive measures to support its growth. The company has been targeting to develop and strengthen its reduced risk product portfolio and offset the impact of traditional cigarette volume decline. Also, the company has been addressing the volume concerns in European and Asian markets by focusing on innovation and marketing efforts, which have positively affected volumes. However, the stronger U.S. Dollar poses a risk to its growth, and will stay an overhang on the stock price in the near term.

The company recently reported mixed operating results for 4Q'14. The company's reported net revenues for 4Q'14 were down 7.6% year-on-year, better-than consensus revenue decline of 8%. Also, Philip Morris reported underlying EPS of … Read More …