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Things You Must Know Before Inter Parfums' (IPAR) Q1 Earnings

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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 first-quarter 2021 results on May 10. The Zacks Consensus Estimate for earnings has moved up from 40 cents per share to 63 cents per share in the past 30 days. The estimate suggests a significant rise from 32 cents per share reported in the year-ago quarter. Notably, Inter Parfums has a trailing four-quarter earnings surprise of 20.4%, on average. In the last reported quarter, the company delivered an earnings surprise of 6.8%.

The consensus mark for first-quarter revenues is pegged at $198.5 million, which indicates growth of 37.1% from the figure reported in the year-ago quarter.

Inter Parfums, Inc. Price and EPS Surprise

 

Inter Parfums, Inc. Price and EPS Surprise

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

 

Things to Know

Recently, Inter Parfums revealed impressive sales numbers for the first quarter of 2021. Net sales in the quarter surged 37.1% year over year to $198.5 million. At comparable exchange rates, consolidated net sales advanced 32.7%. First-quarter 2021 sales exceeded first-quarter 2019 sales by 11.4%, indicating better performance from pre-pandemic levels. Management highlighted that the company continued its revival trend, witnessed in the second half of 2020. Certainly, a robust first-quarter performance despite major travel retail hurdles is impressive.

During the first quarter of 2021, European product sales surged 40% to $159.7 million and U.S.-based product sales soared 26.2% to $38.8 million from the year-ago quarter’s levels. In European operations, Montblanc, Jimmy Choo, Coach, and Lanvin brands registered sales growth of 27.4%, 66.7%, 8.8% and 91.2%, respectively. Moving to the U.S. operations, the company benefited from strength in GUESS, Abercrombie & Fitch, Hollister and Dunhill brands. Also, the debut of MCM signature scent toward the end of the first quarter also led to the upside.

That said, Inter Parfums, in its last earnings call, highlighted that for 2021 it expects slight increase in fixed expenses due to unwinding of certain steps that were undertaken in 2020 to minimize the impacts of the pandemic. This also raises concerns over the quarter to be reported. Apart from this, the company is persistently exposed to volatile currency movements owing to its international presence.

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 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.

Franchise Group, Inc. (FRG - Free Report) currently has an Earnings ESP of +4.02% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Energizer Holdings, Inc. (ENR - Free Report) currently has an Earnings ESP of +4.17% and a Zacks Rank of 3.

Monster Beverage Corporation (MNST - Free Report) currently has an Earnings ESP of +0.41% and carries a Zacks Rank #3.

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