Cigarette maker Philip Morris International says higher selling prices helped its fourth-quarter profit rise 5 percent.

The world's second-biggest cigarette maker also announced a new three-year, $12 billion share buyback program.

The seller of Marlboro and other brands overseas says quarterly profit rose to $1.5 billion, or 80 cents per share. That is above the 78 cents per share analysts were expecting.

Shares rose $1.99. or 4.3 percent, to $48.80.

Revenue spiked 10 percent to $6.7 billion. Analysts expected revenue of $6.49 billion.

The company's cigarette shipment volume edged up less than 1 percent.

The company expects 2010 earnings of $3.75 to $3.85 per share. Analysts expect a profit of $3.82 per share.