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Can International Flavors (IFF) Surprise in Q2 Earnings?
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International Flavors & Fragrances Inc. (IFF - Free Report) is scheduled to report second-quarter 2016 results on Aug 8, after the market closes. The Zacks Consensus Estimate for the quarter is pegged at $1.40.
In the four trailing quarters, International Flavors & Fragrances reported better-than-expected results in three while lagging in one. Average earnings surprise was a negative 0.19%. Last quarter, the company’s earnings of $1.47 per share surpassed the Zacks Consensus Estimate of $1.41 by 4.3%. Let us see how things are shaping up for this quarter.
Factors to Affect Q2 Results
We believe that International Flavors & Fragrances is well positioned to benefit from the growing demand for flavors and fragrances, especially in the emerging countries. To seize opportunities in these growing markets, the company invests in research and development of new and improved products. Over time, the company’s diversified product portfolio has attracted many important business contracts.
Also, International Flavors & Fragrances anticipates reaping benefits from its inorganic expansion strategies. Adding assets that compliments its businesses have enabled the company to expand its product offerings. In addition, the company remains committed on rewarding its shareholders handsomely through dividend payments and share buybacks. Recently, the company announced a 15% increase in its quarterly dividend rate to 64 cents.
We believe these tailwinds must have helped International Flavors & Fragrances to improve its top and bottom-line in the second-quarter 2016.
Earnings Whispers
Our proven model conclusively shows that International Flavors & Fragrances will be able to pull an earnings surprise this quarter. The stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for an earnings beat. This is the case as you will see below.
Zacks ESP: International Flavors & Fragrances has an Earnings ESP of +0.71%, with the Most Accurate estimate of $1.41 exceeding the Zacks Consensus Estimate of $1.40.
Zacks Rank: International Flavors & Fragrances currently carries a Zacks Rank #2, which when combined with a positive Earnings ESP, indicate a possible earnings beat.
Note that we caution against stocks with Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Here are some other companies that you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
OMNOVA Solutions Inc. , with an Earnings ESP of +5.88% and a Zacks Rank #2.
Ingevity Corporation (NGVT - Free Report) , with an Earnings ESP of +2.04% and a Zacks Rank #3.
Minerals Technologies Inc. (MTX - Free Report) , with an Earnings ESP of +0.87% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
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Can International Flavors (IFF) Surprise in Q2 Earnings?
International Flavors & Fragrances Inc. (IFF - Free Report) is scheduled to report second-quarter 2016 results on Aug 8, after the market closes. The Zacks Consensus Estimate for the quarter is pegged at $1.40.
In the four trailing quarters, International Flavors & Fragrances reported better-than-expected results in three while lagging in one. Average earnings surprise was a negative 0.19%. Last quarter, the company’s earnings of $1.47 per share surpassed the Zacks Consensus Estimate of $1.41 by 4.3%. Let us see how things are shaping up for this quarter.
Factors to Affect Q2 Results
We believe that International Flavors & Fragrances is well positioned to benefit from the growing demand for flavors and fragrances, especially in the emerging countries. To seize opportunities in these growing markets, the company invests in research and development of new and improved products. Over time, the company’s diversified product portfolio has attracted many important business contracts.
Also, International Flavors & Fragrances anticipates reaping benefits from its inorganic expansion strategies. Adding assets that compliments its businesses have enabled the company to expand its product offerings. In addition, the company remains committed on rewarding its shareholders handsomely through dividend payments and share buybacks. Recently, the company announced a 15% increase in its quarterly dividend rate to 64 cents.
We believe these tailwinds must have helped International Flavors & Fragrances to improve its top and bottom-line in the second-quarter 2016.
Earnings Whispers
Our proven model conclusively shows that International Flavors & Fragrances will be able to pull an earnings surprise this quarter. The stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for an earnings beat. This is the case as you will see below.
Zacks ESP: International Flavors & Fragrances has an Earnings ESP of +0.71%, with the Most Accurate estimate of $1.41 exceeding the Zacks Consensus Estimate of $1.40.
Zacks Rank: International Flavors & Fragrances currently carries a Zacks Rank #2, which when combined with a positive Earnings ESP, indicate a possible earnings beat.
INTL F & F Price and EPS Surprise
INTL F & F Price and EPS Surprise | INTL F & F Quote
Note that we caution against stocks with Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Here are some other companies that you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
OMNOVA Solutions Inc. , with an Earnings ESP of +5.88% and a Zacks Rank #2.
Ingevity Corporation (NGVT - Free Report) , with an Earnings ESP of +2.04% and a Zacks Rank #3.
Minerals Technologies Inc. (MTX - Free Report) , with an Earnings ESP of +0.87% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>