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Inter Parfums (IPAR) to Report Q4 Earnings: What's in Store?

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Inter Parfums, Inc. (IPAR - Free Report) is likely to post an increase in the top and the bottom line when it reports fourth-quarter 2020 results on Mar 1. The Zacks Consensus Estimate for fourth-quarter earnings has moved up from 10 cents per share to 44 cents per share in the past 30 days. The projection suggests a surge of 69.2% from the year-ago quarter’s reported figure. For 2020, the Zacks Consensus Estimate for earnings is pegged at $1.18 per share, which suggests a decline of 37.9% from the prior-year’s reported figure. Notably, Inter Parfums has a trailing four-quarter earnings surprise of 18.7%, on average. In the last reported quarter, the company delivered an earnings surprise of 26.8%.

The Zacks Consensus Estimate for quarterly revenues is pegged at nearly $184 million that indicates growth of 3.5% from the figure reported in the year-ago quarter. For 2020, the consensus mark is pegged at nearly $539 million, suggesting a slump of 24.5% from the year-ago period’s reported number.

Inter Parfums, Inc. Price and EPS Surprise

 

Inter Parfums, Inc. Price and EPS Surprise

Inter Parfums, Inc. price-eps-surprise | Inter Parfums, Inc. Quote

 

Factors to Note

Recently, Inter Parfums revealed sales numbers for the fourth quarter and full year 2020. Net sales in the quarter amounted to $184 million, up 3.5% (unchanged year over year at constant currency) from $177.8 million reported in the year-ago quarter. The company’s Europe-based operations registered net sales of $139.6 million in the fourth quarter, which increased 8.1% year over year. However, in U.S.-based operations, net sales declined 8.8% to $44.4 million.

For year ended Dec 31, 2020, Inter Parfums’ net sales amounted to $539 million. The figure declined 24.5% from $713.5 million reported in the year-ago period. Sales in the Europe and U.S.-based operations declined 22% and 32.3%, respectively, during the same period.

That said, the company highlighted that quarterly sales came ahead of management’s expectations and improved sequentially. In fact, an uptrend in the sales had led Inter Parfums to raise earnings guidance for 2020.  Management expects earnings per share in the band of $1.15-$1.20 for 2020. Well, cost-containment efforts undertaken at the beginning of the pandemic are likely to have had a positive impact on the bottom line in 2020. Apart from these, Inter Parfums’ focus on product launches has been aiding growth.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Inter Parfums this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Inter Parfums sports a Zacks Rank #1 and has an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.

Grocery Outlet Holding Corp. (GO - Free Report) currently has an Earnings ESP of +5.66% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Purple Innovation (PRPL - Free Report) currently has an Earnings ESP of +4.76% and a Zacks Rank #3.

Ollie’s Bargain Outlet Holdings, Inc. (OLLI - Free Report) currently has an Earnings ESP of +3.73% and carries a Zacks Rank #3.

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