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  Oct 22 (Reuters) - Philip Morris International's (PMI) shares hit record highs on Tuesday after the cigarette maker raised
  its annual profit forecast and beat third-quarter estimates thanks to
  higher prices and strong demand for its smoking alternatives.
  
  
  PMI has invested billions of dollars in developing substitutes for cigarettes as health-conscious consumers switch to
  smoking alternatives in some markets, including
  its IQOS heated tobacco device and ZYN nicotine pouches, which are now
  a key focus for investors.
  
  U.S. ZYN shipments in the quarter grew 41.4% over the prior-year
  period, rebounding after supply constraints curtailed rapid
  growth. The Marlboro maker has been investing to expand production capacity for ZYN, in an effort to
  meet strong demand.
  
  The company's flagship heated tobacco device, IQOS, also saw strong
  growth in regions such as Japan, Europe and Indonesia,
  reassuring investors after volumes lagged expectations in the past.
  
  
  "We delivered exceptionally strong performance, with record quarterly net revenues and earnings per share," said Chief Executive Officer Jacek Olczak, adding
  IQOS growth had also accelerated.
  
  PMI's shares rose 9%, and remained almost
  8% higher at 11.43 a.m. (1543 GMT) in New York trading.
  
  
  The company also enjoyed higher shipment volumes
  for cigarettes, with higher pricing also driving a 5.2% increase
  in revenues from its combustible tobacco
  business.
  
  PMI raised its forecast for 2024 adjusted earnings per share, excluding currency, to between $6.85 and $6.91, compared with its prior range of $6.67
  to $6.79.
  
  It reported revenue of $9.91 billion for the third quarter, versus
  analysts' estimates of $9.69 billion, according to data
  compiled by LSEG.
  
  Its quarterly adjusted profit of $1.91 per share also beat estimates of $1.82 per share.
  
  
  Last week, Philip Morris said it, along with
  peers British American Tobacco and Japan Tobacco, would
  pay C$32.5 billion ($23.6 billion) to settle long-running health-related lawsuits in Canada.
  (Reporting by Anuja Bharat Mistry in Bengaluru; Editing
  by Shilpi Majumdar and Sharon Singleton)
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