01:16 PM EDT, 10/22/2024 (MT Newswires) -- Shares of Philip Morris ( PM ) jumped intraday Tuesday after the tobacco company reported higher-than-expected third-quarter results and lifted its full-year earnings guidance amid strong demand for smoke-free products.

Adjusted earnings per share climbed to $1.91 for the three months ended Sept. 30 from $1.67 a year ago and topped the $1.82 average analyst estimate on Capital IQ. Revenue advanced to $9.91 billion from $9.14 billion year over year and beat the Street's $9.69 billion forecast. Shares of Philip Morris ( PM ) were up 8.6% intraday.

"In the third quarter, we delivered exceptionally strong performance, with record quarterly net revenues and earnings per share," Chief Executive Jacek Olczak said in a statement. "This reflects excellent momentum across all regions and categories, with a reacceleration in IQOS adjusted in-market sales growth, strong ZYN volumes, and resilient combustible performance."

Organic top- and bottom-line grew by a double digit, Chief Financial Officer Emmanuel Babeau told analysts on a conference call, according to a Capital IQ transcript.

IQOS, a smoke-free device that heats rather than burns tobacco, delivered "a significant step-up" in heated tobacco units-adjusted in-market sales volume in a quarter that has been historically impacted negatively by seasonality, Babeau said on the call. This reflects very strong performance in Japan and reaccelerating momentum in Europe, he said.

Smoke-free net revenue and gross profit grew organically by roughly 17% and 20%, respectively, in the third quarter, driving 200 basis points of gross margin expansion, according to Babeau. Combustible revenue and gross profit accelerated by nearly 9% organically, he said.

The cigarette and vape maker increased its full-year adjusted EPS forecast to between $6.45 and $6.51 from its previous guidance of $6.33 to $6.45. Analysts surveyed by Capital IQ are modeling for normalized EPS of $6.45 in the ongoing year.

While Philip Morris ( PM ) continues to work through a supply constraint for nicotine pouch ZYN, category share stabilized in the third quarter, Babeau told analysts. The company expects shipments to begin matching consumer demand beginning in the fourth quarter.

Price: 128.86, Change: +9.90, Percent Change: +8.32