Back to top

Analyst Blog

Shares of International Flavors & Fragrances Inc. (IFF - Analyst Report) scaled a new 52-week high of $101.73 during its trading session on Jun 9. The new 52-week high improved upon the last one of $100.93 hit on May 8.

International Flavors & Fragrances closed the session at $101.73, reflecting a solid year-to-date return of 27.3%. The trading volume for the session was 3.2 million shares. Positive revision in the 2014 earnings estimate as well as an expected earnings growth rate of 8.7% for the next five years indicates further upward potential for this flavors and fragrances manufacturer.

Growth Drivers

Share price of International Flavors & Fragrances has climbed 3.7% since the company reported first-quarter 2014 results on May 6. Adjusted earnings grew 11% year over year to $1.32 per share, surpassing the Zacks Consensus Estimate of $1.25 by 5.6%.

Revenues increased 6% or 7% on a constant currency basis. The top-line growth was driven by solid performance in the emerging markets. The acquisition of Aromor added 1% to sales growth. Margins benefited from cost reduction and manufacturing efficiencies.

For 2014, management anticipates revenues and earnings per share to grow in the double-digit range. Aromor is expected to add 1% to local currency sales growth and be accretive to earnings.

The stellar quarter performance and a robust outlook coupled with a positive average earnings surprise of 1.7% have made us optimistic about International Flavors & Fragrances’ performance in the coming quarters. The company has an Earnings ESP of +0.79% for 2014 and +1.64% for 2015.
Estimate Revisions Show Potency

Over the last 60 days, the Zacks Consensus Estimate for International Flavors & Fragrances has increased by 1.6% to $4.96 for 2014 and by 1.3% to $5.50 for 2015. The Zacks Consensus Estimate also depicts year-over-year growth rates of 13.1% for 2014 and 9.1% for 2015.

International Flavors & Fragrances has a market capitalization of $5.2 billion and carries a Zacks Rank #2 (Buy). Other stocks worth considering in the industry include NL Industries Inc. (NL), Sensient Technologies Corporation (SXT - Snapshot Report) and Novozymes A/S (NVZMY). All these stocks carry the same Zacks Rank as International Flavors & Fragrances.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.00 +3.09%
SANCHEZ ENE… SN 34.18 +2.67%
THE PANTRY… PTRY 21.02 +2.09%
INTEL CP INTC 35.15 +1.88%
PIPER JAFFR… PJC 54.54 +1.70%