Philip Morris International will record a roughly $500 million impairment charge in the second quarter, reducing the carrying value of its investment in Canadian affiliate Rothmans Benson & Hedges. The write-down will lower reported earnings by approximately 33 cents per share, affecting the tobacco company's financial results for the period ending June 30.

The charge prompted Philip Morris to trim its full-year per-share earnings guidance to $7.18 to $7.33, down from the previous $7.56 to $7.71 forecast issued in April. Additionally, the company reduced its adjusted-earnings projection to $8.31 to $8.46 per share from $8.36 to $8.51, citing both the impairment and updated currency exchange impacts on overseas operations.

Market analysts tracked by FactSet anticipate full-year adjusted earnings of $8.40 per share on average, placing the midpoint of Philip Morris's revised guidance slightly below consensus expectations. This marks the latest adjustment as the company navigates regulatory pressures and shifting consumer preferences away from traditional tobacco products in key international markets.

The impairment suggests challenges in the Canadian market, where tobacco regulations and declining smoking rates may be pressuring RBH's long-term profitability. Investors now face a tobacco giant whose growth trajectory appears more uncertain amid these market headwinds.