We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
International Flavors (IFF) Q1 Earnings: What to Expect?
Read MoreHide Full Article
International Flavors & Fragrances Inc. (IFF - Free Report) is scheduled to report first-quarter 2018 results on May 7, after the market closes.
In the last four quarters, the company delivered better-than-expected results in three while lagging in one. Average earnings surprise was a positive 3.68%. Notably, in the last reported quarter, the company’s earnings of $1.40 per share surpassed the Zacks Consensus Estimate by 7.69%. Estimates for the to-be-reported quarter are pegged at $1.58.
The stock currently carries a Zacks Rank #2 (Buy). In the last month, the company’s shares have yielded 2.3% return, outperforming roughly 2% gain of the industry it belongs to.
Let us see how things are shaping up for the company prior to this announcement.
Factors to Influence Q1 Results
We believe that International Flavors & Fragrances will benefit from growth in global and domestic economies as well as increasing trade relations with foreign nations. Particularly, emerging nations are attractive markets for the company as the demand for consumer products is high in those regions. For 2018, the company anticipates consumer staples volume to grow 2% over the previous year.
International Flavors & Fragrances’ expectation for the full year will give a rough idea of the factors that might have influenced the quarterly results. The company anticipates gaining from acquired businesses as well as its multi-year productivity program, enabling it to control costs, make strategic investments and expand businesses globally. Also, the launch of Re-Imagine in 2017 will help in capturing unaddressed opportunities in the food and beverage industry while assisting the company in innovation initiatives.
For the Flavors segment, continued growth in a number of consumer food companies, as well as the need for more transparency in consumer products, has created opportunities for the company. Demand for flavors is strong from Savory, Sweet, Dairy and Beverages categories of consumer products. The segment will gain from the PowderPure buyout and the creation of Tastepoint — a new company to serve middle-market customers. Both the buyout and the company formation were accomplished in 2017.
The Flavors segment’s Zacks Consensus Estimate for revenues is pegged at $441 million for the first quarter of 2018. This projection is above $402 million and $406 million recorded in the last reported quarter and the year-ago quarter, respectively. Also, the segment’s average sales surprise for the last four quarters was a positive 1.26%.
In addition to growing population and rising product demand, the company’s Fragrances segment will gain from new business wins and more businesses from existing customers. Demand for Fragrance Compounds and Ingredients remain strong. Also, the acquisition of Fragrance Resources in 2017 and the creation of new fragrance ingredient called Veraspice will be advantageous.
The Fragrances segment’s Zacks Consensus Estimate for revenues is pegged at $465 million for the first quarter of 2018. This projection is above $453 million and $422 million recorded in the last reported quarter and the year-ago quarter, respectively. Also, the segment’s average sales surprise for the last four quarters was a positive 2.02%.
On the flip side, rise in raw material costs, a high debt level, industry competition and unfavorable movements in foreign currencies are concerning.
Stocks to Consider
Our proven model provides some idea on the stocks that are about to release their earnings results. Per the model, a stock needs to have a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) for a likely earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
However, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revision momentum.
Here are some other companies in the Zacks Basic Materials sector that you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Kopper Holdings Inc. (KOP - Free Report) has an Earnings ESP of +5% and a Zacks Rank #2.
Ingevity Corp. (NGVT - Free Report) has an Earnings ESP of +7.25% and a Zacks Rank #3.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Image: Bigstock
International Flavors (IFF) Q1 Earnings: What to Expect?
International Flavors & Fragrances Inc. (IFF - Free Report) is scheduled to report first-quarter 2018 results on May 7, after the market closes.
In the last four quarters, the company delivered better-than-expected results in three while lagging in one. Average earnings surprise was a positive 3.68%. Notably, in the last reported quarter, the company’s earnings of $1.40 per share surpassed the Zacks Consensus Estimate by 7.69%. Estimates for the to-be-reported quarter are pegged at $1.58.
The stock currently carries a Zacks Rank #2 (Buy). In the last month, the company’s shares have yielded 2.3% return, outperforming roughly 2% gain of the industry it belongs to.
Let us see how things are shaping up for the company prior to this announcement.
Factors to Influence Q1 Results
We believe that International Flavors & Fragrances will benefit from growth in global and domestic economies as well as increasing trade relations with foreign nations. Particularly, emerging nations are attractive markets for the company as the demand for consumer products is high in those regions. For 2018, the company anticipates consumer staples volume to grow 2% over the previous year.
International Flavors & Fragrances’ expectation for the full year will give a rough idea of the factors that might have influenced the quarterly results. The company anticipates gaining from acquired businesses as well as its multi-year productivity program, enabling it to control costs, make strategic investments and expand businesses globally. Also, the launch of Re-Imagine in 2017 will help in capturing unaddressed opportunities in the food and beverage industry while assisting the company in innovation initiatives.
For the Flavors segment, continued growth in a number of consumer food companies, as well as the need for more transparency in consumer products, has created opportunities for the company. Demand for flavors is strong from Savory, Sweet, Dairy and Beverages categories of consumer products. The segment will gain from the PowderPure buyout and the creation of Tastepoint — a new company to serve middle-market customers. Both the buyout and the company formation were accomplished in 2017.
The Flavors segment’s Zacks Consensus Estimate for revenues is pegged at $441 million for the first quarter of 2018. This projection is above $402 million and $406 million recorded in the last reported quarter and the year-ago quarter, respectively. Also, the segment’s average sales surprise for the last four quarters was a positive 1.26%.
In addition to growing population and rising product demand, the company’s Fragrances segment will gain from new business wins and more businesses from existing customers. Demand for Fragrance Compounds and Ingredients remain strong. Also, the acquisition of Fragrance Resources in 2017 and the creation of new fragrance ingredient called Veraspice will be advantageous.
The Fragrances segment’s Zacks Consensus Estimate for revenues is pegged at $465 million for the first quarter of 2018. This projection is above $453 million and $422 million recorded in the last reported quarter and the year-ago quarter, respectively. Also, the segment’s average sales surprise for the last four quarters was a positive 2.02%.
On the flip side, rise in raw material costs, a high debt level, industry competition and unfavorable movements in foreign currencies are concerning.
Stocks to Consider
Our proven model provides some idea on the stocks that are about to release their earnings results. Per the model, a stock needs to have a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) for a likely earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
However, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revision momentum.
Here are some other companies in the Zacks Basic Materials sector that you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Westlake Chemical Corp. (WLK - Free Report) has an Earnings ESP of +1.18% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kopper Holdings Inc. (KOP - Free Report) has an Earnings ESP of +5% and a Zacks Rank #2.
Ingevity Corp. (NGVT - Free Report) has an Earnings ESP of +7.25% and a Zacks Rank #3.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>