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Inter Parfums (IPAR) Stock Jumps 4.0%: Will It Continue to Soar?

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Inter Parfums (IPAR - Free Report) shares soared 4% in the last trading session to close at $157.59. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.5% gain over the past four weeks.

Inter Parfums’ shares rallied on impressive sales numbers for first-quarter 2023. Following the upbeat sales numbers, management raised its top-and bottom-line view for 2023. Quarterly net sales rallied 24% to $312 million compared with $251 million reported in the year-ago quarter. At comparable foreign currency rates, first-quarter net sales rallied 27%. Inter Parfums’ first-quarter Europe-based product sales came in at $230 million, up 26% from 2022 levels. U.S.-based product sales amounted to $82 million, increasing 19% from first-quarter 2022. The company expects 2023 net sales to come in at $1.25 billion up from $1.2 billion expected earlier. The company anticipated earnings per share of $4.25, up from $4.00 projected earlier.

This perfume maker is expected to post quarterly earnings of $1.19 per share in its upcoming report, which represents a year-over-year change of +8.2%. Revenues are expected to be $278.8 million, up 11.2% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Inter Parfums, the consensus EPS estimate for the quarter has been revised 1.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on IPAR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Inter Parfums belongs to the Zacks Cosmetics industry. Another stock from the same industry, Estee Lauder (EL - Free Report) , closed the last trading session 0.7% higher at $258.48. Over the past month, EL has returned 8.2%.

For Estee Lauder, the consensus EPS estimate for the upcoming report has changed +0.3% over the past month to $0.48. This represents a change of -74.7% from what the company reported a year ago. Estee Lauder currently has a Zacks Rank of #3 (Hold).

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