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Philip Morris (PM) delivered better-than-expected 3Q19 results although its share fell after the company provided muted 4Q guidance, largely due to timing issues affecting 4Q outlook.

The company’s heated-tobacco products (IQOS) were a highlight in the quarter, with management confident that the company is well on its way to hitting its unit-shipment volume target of 90 to 100 bn by 2021.

This is due to ongoing strength in key IQOS market such as Russia, Japan and Europe. Management also highlighted that IQOS’s launch in the US (being spearheaded by Altria) is off to a good start and that the company is “happy with the relationship” despite merger talks between the two company now fully off the table.

The recent negative headlines surrounding vaping make alternatives such as IQOS all the more attractive.