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Philip Morris: Big Warning Signs

One of the stocks I cover the most on Seeking Alpha is cigarette giant Philip Morris (PM). Over the past couple of months, I've been detailing a number of negative items that were going to pressure results. The primary issue right now is the stronger dollar, which is taking a huge chunk out of revenues and earnings. On Thursday, the company reported its fourth quarter results. I've been predicting for a while how this report would be quite weak, but things were even worse than I thought. Today, I'll discuss some key warning signs, and what investors should do now.

Q4 results and 2015 guidance:

The company reported net revenues of $7.2 billion. This figure beat analyst estimates for $7.12 billion, but was still down 7.6% over the prior year period. Excluding currencies and acquisitions, net revenues were up 1.1%. Cigarette shipments excluding acquisitions were down 3.8%. Adjusted earnings… Read More …