Philip Morris Earnings “Up in Smoke”? Here’s What the Catchy Headlines Won’t Tell You

Philip Morris (PM) reported an earnings miss this morning and the market had an expected overreaction, sending the stock down more than $4 (over 3%) at the start of trading, hitting a low of $117.55. The financial media was all over the stock: "Phillip Morris Misses On Earnings, Slashes Guidance" wrote Investor's Business Daily. "Philip Morris stock slides as it lowers guidance and revenues, earnings miss" was the headline from MarketWatch. philip morris It's important to understand why these headlines, with their loaded words and phrases, are so misleading. According to the media, Philip Morris didn't just lower their guidance, they "slashed" it! The stock doesn't go down, it "slides." Sounds much more troubling when you read it that way, right?

You Need to DIG DEEPER

Many investors skip over hidden truths and assume that, just by reading headlines, they'll be able to discern all the information they need to make an educated decision about a company. At American Dream Investing, we impress upon our subscribers the need to dig deeper. Most people simply don't have the time to invest hours of research, which is why we do the heavy lifting and you can then reach your own conclusions.

Listening In

We listened to the Philip Morris earnings conference call this morning, where Chief Financial Officer Jacek Olczak went through the earnings report and fielded questions from analysts. While listening to the call, we put in an aggressive order...

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