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What's in the Cards for International Flavors' (IFF) Q3 Earnings?

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International Flavors & Fragrances Inc. (IFF - Free Report) is scheduled to report third-quarter 2021 results on Nov 8 after the closing bell.

Which Way are the Estimates Headed?

The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $3 billion, indicating a year-over-year surge of 136.4%. The Zacks Consensus Estimate for the September-end quarter earnings per share is pinned at $1.42, suggesting year-over-year growth of 1.43%.

Key Factors

International Flavors’ cost-containment and productivity improvement initiatives, margin improvement, acquisition-related synergies, as well as favorable taxes are likely to have boosted the overall profitability during third-quarter 2021.

International Flavors’ performance during the July-September quarter is anticipated to have benefited from significant demand for the Fabric, Home, Hair Care, and Personal Wash product categories amid the pandemic-induced increase in global consumer staples purchases. The company has been gaining from favorable markets for flavors and fragrances, supported by demand for a variety of consumer products and growth in emerging markets. Further, new business wins and the Frutarom acquisition are likely to have aided the company’s performance during the period under consideration.

Substantial growth in Consumer Fragrances, Cosmetic Actives, and a strong rebound in demand for Fine Fragrance are likely to have aided the Scent segment’s performance during the quarter. Evolving consumer buying trends are driving demand for the Home & Personal Care business, which will likely get reflected in the Health & Biosciences segment’s quarterly results. Also, strong growth in Industrial Pharma is expected to have supported the Pharma Solutions segment during the soon-to-be reported quarter.

Nevertheless, slowdown in demand for flavors utilized in the retail food service categories on account of the pandemic might have affected the company’s performance in the third quarter. Rising manufacturing and raw-material costs as well as supply-chain disruptions might have dented the company’s margin during the quarter under review.

Earnings Whispers

Our proven model doesn’t conclusively predict an earnings beat for International Flavors this season. The combination of a positive Earnings ESP, and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for International Flavors is 0.00%.

Zacks Rank: International Flavors currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today's Zacks #1 Rank stocks here.

Price Performance

Over the past year, the company’s shares have gained 40.7% against the industry’s loss of 5.9%.

Zacks Investment ResearchImage Source: Zacks Investment Research

Stocks to Consider

Here are a few Consumer Staples stocks which you may want to consider, as our model shows that these have the right combination of elements to post earnings beats in their upcoming releases:

United Natural Foods, Inc. (UNFI - Free Report) has an Earnings ESP of +9.24% and currently flaunts a Zacks Rank #1.

Tyson Foods, Inc. (TSN - Free Report) has an Earnings ESP of +2.51% and carries a Zacks Rank of 2, at present.

Service Corporation International (SCI - Free Report) , a Zacks #2 Ranked stock, has an Earnings ESP of +8.33%.