What do you do when a stock that has gained 25% during the first three months and 19 days of the year misses earnings forecasts and offers disappointing guidance? If that stock is Philip Morris International (PM) you sell, and then sell some more.
At least that appears to be the sentiment today, as shares of Philip Morris have dropped more than 3% this morning after reporting an adjusted first-quarter profit of 98 cents, missing forecasts for $1.03 a share, and offering full year guidance for $4.48 a share, below the consensus for $4.88.
Wells Fargo’s Bonnier Herzog isn’t worried, however. She explains why: