International Flavors & Fragrances Inc. (IFF - Free Report) is scheduled to report second-quarter 2019 results after the closing bell on Aug 5.
The Zacks Consensus Estimate for total revenues for the to-be-reported quarter is pegged at $1.30 billion, indicating a 41.8% jump from the year-ago quarter. The Zacks Consensus Estimate for earnings is pegged at $1.61 for the second quarter, suggesting a fall of 3% from the year-ago quarter.
Factors at Play
The company is gaining from favorable markets for flavors and fragrances, backed by rising variety of consumer-product demand and anticipated growth in emerging markets in the second quarter. Further, new business wins and the Frutarom acquisition are likely to aid the company’s performance.
International Flavors is aimed at boosting efficiency through its cost-cutting efforts and productivity initiatives in order to support overall profitability. However, raw-material cost inflation and operating expenses will keep dragging down the company’s margins.
Moreover, International Flavors anticipates mid-single-digit inflation in its legacy business in the current year as synthetic materials continue to rise, on account of several supply chain disruptions it has been facing over the last 12 to 15 months. In addition, higher interest expenses due to high-debt level and unfavorable foreign-currency translation impact are causes of concern. These will likely dent the to-be-reported quarter’s results and profitability.
The Flavors segment’s Zacks Consensus Estimate for revenues is pegged at $448 million for the second quarter. This projection indicates a decline from the prior-year quarter’s $451 million. It is anticipated to report an operating profit of $114 million in the quarter under review, suggesting a 3.6% improvement from the year-ago quarter’s $110 million.
The Fragrances segment’s Zacks Consensus Estimate for revenues is pegged at $478 million for the April-June quarter, projecting 2% growth from the $469 million recorded in the year-earlier period. The segment’s operating profit is expected to be up 6.2% year on year to $86 million.
Internationa Flavors & Fragrances, Inc. Price and EPS Surprise
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
International Flavors & Fragrances Inc. (IFF - Free Report) is scheduled to report second-quarter 2019 results after the closing bell on Aug 5.
The Zacks Consensus Estimate for total revenues for the to-be-reported quarter is pegged at $1.30 billion, indicating a 41.8% jump from the year-ago quarter. The Zacks Consensus Estimate for earnings is pegged at $1.61 for the second quarter, suggesting a fall of 3% from the year-ago quarter.
Factors at Play
The company is gaining from favorable markets for flavors and fragrances, backed by rising variety of consumer-product demand and anticipated growth in emerging markets in the second quarter. Further, new business wins and the Frutarom acquisition are likely to aid the company’s performance.
International Flavors is aimed at boosting efficiency through its cost-cutting efforts and productivity initiatives in order to support overall profitability. However, raw-material cost inflation and operating expenses will keep dragging down the company’s margins.
Moreover, International Flavors anticipates mid-single-digit inflation in its legacy business in the current year as synthetic materials continue to rise, on account of several supply chain disruptions it has been facing over the last 12 to 15 months. In addition, higher interest expenses due to high-debt level and unfavorable foreign-currency translation impact are causes of concern. These will likely dent the to-be-reported quarter’s results and profitability.
The Flavors segment’s Zacks Consensus Estimate for revenues is pegged at $448 million for the second quarter. This projection indicates a decline from the prior-year quarter’s $451 million. It is anticipated to report an operating profit of $114 million in the quarter under review, suggesting a 3.6% improvement from the year-ago quarter’s $110 million.
The Fragrances segment’s Zacks Consensus Estimate for revenues is pegged at $478 million for the April-June quarter, projecting 2% growth from the $469 million recorded in the year-earlier period. The segment’s operating profit is expected to be up 6.2% year on year to $86 million.
Internationa Flavors & Fragrances, Inc. Price and EPS Surprise
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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