NEW YORK (CNN/Money) - Philip Morris Cos., which makes Marlboro cigarettes, posted improved second-quarter results Thursday that edged Wall Street expectations largely on the strength of its domestic tobacco business.

But the company's shares slipped more than 3 percent after it cut its growth forecasts for the year.

The tobacco products company, which has interests in Miller Brewing and Kraft Foods, earned $2.7 billion, or $1.24 a share, excluding special items. That's up from $2.3 billion, or $1.03 a share, a year earlier. Analysts surveyed by earnings tracker First Call had a consensus forecast of $1.23 a share

Revenue rose to $21.1 billion from $20.9 billion a year earlier.

The company reported net earnings of $2.6 billion, or $1.22 a share, up from $2.3 billion, or $1.04 a share, a year earlier.

Philip Morris (MO: down $1.56 to $42.56, Research, Estimates) said it expects full-year earnings-per-share growth at the lower end of its previous 9 percent to 11 percent estimate. Analysts on average anticipated a full-year profit of $4.88 a share, according to First Call, or 21 percent growth.

The full-year estimate reflects the company's plan to invest about $350 million in its premium brands and retail presence to shore up volume and market share.

"I think it's good that they're going to use the incremental benefit from currency translations to give some oxygen to Philip Morris International, which really has been starved for some time because of negative currency translations," Prudential Securities analyst Rob Campagnino told Reuters.

During the quarter, Philip Morris announced it would sell its Miller Brewing Co. to South African Breweries PLC for about $5 billion. The companies closed the transaction on July 9, Philip Morris said.

The company repurchased 23.5 million of its common shares at a cost of $1.2 billion in the quarter, and reiterated Thursday its plans to accelerate its share buyback program during the second half of the year to exceed $6 billion.

Philip Morris said its domestic tobacco business posted a 5.1 percent increase in operating income from a year earlier, reflecting increased pricing and fewer discounts. However, shipment volume fell 13.8 percent in the quarter mainly because of the price increase and the timing of promotions compared with the year-earlier period.

"Our domestic tobacco business delivered solid income gains in a highly competitive marketplace," CEO Louis Camilleri said in a statement. "Our international tobacco business delivered strong volume and income gains, with excellent share growth across most of its key markets."

The company's premium brands, Marlboro and Parliament, drove much of the growth in the business while it experienced market share declines in other brands such as Merit, Benson & Hedges, and Cambridge.

The results come a day after Philip Morris spinoff Kraft Foods (KFT: down $2.61 to $35.33, Research, Estimates) posted a higher second-quarter profit that also beat Wall Street expectations.