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International Flavors Completes Fragrance Resources Buyout
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New York-based International Flavors & Fragrances Inc. (IFF - Free Report) declared that it has successfully concluded the acquisition of Fragrance Resources, for an undisclosed amount. The move is in sync with the company’s ongoing Vision 2020 business strategy and would likely boost its revenues and profitability in the near term.
Over the last two years, International Flavors & Fragrances’ shares recorded a return of 8.80%, as against the negative return of 6.11% provided by the Zacks classified Chemicals Specialty industry.
Inside the Headlines
Fragrance Resources is recognized for its product line of specialty fine fragrances. The company serves its customers through its facilities in Germany, North America, France, and China. With the addition of Fragrance Resources, International Flavors & Fragrances expects to fortify the fragrances businesses among its fast-growing regional customers.
Notably, the acquired assets are anticipated to generate incremental revenues of $75 million in 2017 as well as modestly bolster earnings.
We believe that such acquisitions are consistent with International Flavors & Fragrances’ expansion policy and its Vision 2020 business strategy as well. The company prefers to invest in acquisitions as a means to gain access to fresh customers, regions and technologies. A diverse portfolio and product mix, along with new business wins, is likely to aid the company in delivering solid results in the quarters ahead.
Why a Poor Zacks Rank?
International Flavors & Fragrances currently carries a Zacks Rank #4 (Sell). Over the last 60 days, the Zacks Consensus Estimate for the stock moved south for 2017.
The company is exposed to risks arising from adverse currency movements, geopolitical issues in some foreign countries and sturdy competition. We believe that these headwinds might shadow the robust growth initiatives undertaken by the company. For instance, adverse foreign currency movements are likely to affect the company's sales by 1.5%, while operating profit and earnings per share by 2%, for full-year 2016.
Key Picks
Some better-ranked stocks within the industry are listed below:
AK Steel Holding Corporation has a whopping average earnings surprise of 170.80% for the last four quarters and currently sports a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BASF SE (BASFY - Free Report) currently flaunts a Zacks Rank #1 and has an average earnings surprise of 34.34% for the trailing four quarters.
Albemarle Corporation (ALB - Free Report) currently carries a Zacks Rank #2 (Buy) and has an average earnings surprise of 27.13% for the last four quarters.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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International Flavors Completes Fragrance Resources Buyout
New York-based International Flavors & Fragrances Inc. (IFF - Free Report) declared that it has successfully concluded the acquisition of Fragrance Resources, for an undisclosed amount. The move is in sync with the company’s ongoing Vision 2020 business strategy and would likely boost its revenues and profitability in the near term.
Over the last two years, International Flavors & Fragrances’ shares recorded a return of 8.80%, as against the negative return of 6.11% provided by the Zacks classified Chemicals Specialty industry.
Inside the Headlines
Fragrance Resources is recognized for its product line of specialty fine fragrances. The company serves its customers through its facilities in Germany, North America, France, and China. With the addition of Fragrance Resources, International Flavors & Fragrances expects to fortify the fragrances businesses among its fast-growing regional customers.
Notably, the acquired assets are anticipated to generate incremental revenues of $75 million in 2017 as well as modestly bolster earnings.
We believe that such acquisitions are consistent with International Flavors & Fragrances’ expansion policy and its Vision 2020 business strategy as well. The company prefers to invest in acquisitions as a means to gain access to fresh customers, regions and technologies. A diverse portfolio and product mix, along with new business wins, is likely to aid the company in delivering solid results in the quarters ahead.
Why a Poor Zacks Rank?
International Flavors & Fragrances currently carries a Zacks Rank #4 (Sell). Over the last 60 days, the Zacks Consensus Estimate for the stock moved south for 2017.
The company is exposed to risks arising from adverse currency movements, geopolitical issues in some foreign countries and sturdy competition. We believe that these headwinds might shadow the robust growth initiatives undertaken by the company. For instance, adverse foreign currency movements are likely to affect the company's sales by 1.5%, while operating profit and earnings per share by 2%, for full-year 2016.
Key Picks
Some better-ranked stocks within the industry are listed below:
AK Steel Holding Corporation has a whopping average earnings surprise of 170.80% for the last four quarters and currently sports a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BASF SE (BASFY - Free Report) currently flaunts a Zacks Rank #1 and has an average earnings surprise of 34.34% for the trailing four quarters.
Albemarle Corporation (ALB - Free Report) currently carries a Zacks Rank #2 (Buy) and has an average earnings surprise of 27.13% for the last four quarters.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>