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What's in Store for International Flavors (IFF) Q1 Earnings?
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International Flavors & Fragrances Inc. (IFF - Free Report) is scheduled to report first-quarter 2020 results after the closing bell on May 11.
Which Way are the Estimates Headed?
The Zacks Consensus Estimate for International Flavors’ first-quarter revenues is currently pegged at $1,291 million, indicating a decrease of 0.5% from the year-ago quarter. The Zacks Consensus Estimate for earnings per share is pegged at $1.60, suggesting growth of 2% year on year.
International Flavors & Fragrances Inc. Price and EPS Surprise
Our proven model predicts 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. 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 +2.19%. This is because currently the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.63 per share and $1.60, respectively.
Zacks Rank: International Flavors currently carries a Zacks Rank #3.
Key Factors
The company has been benefiting from favorable markets for flavors and fragrances supported by growth in emerging markets. Further, new business wins and the Frutarom acquisition are anticipated to have aided the company’s performance during the period under consideration. Together, International Flavors and Frutarom have created a global leader in natural taste, scent and nutrition with a broader customer base, more diversified product offerings and more exposure to end markets, with a focus on naturals and health and wellness.
International Flavors’ focus on driving efficiency through its cost and productivity initiatives, margin improvements as well as acquisition-related synergies and favorable taxes are anticipated to have boosted overall profitability during the March-end quarter. However, raw-material cost inflation and higher operating expenses might have clipped the company’s margins during this period.
The company will report financial results in two segments, Taste and Scent, incorporating the Frutarom business into the Taste segment.
The Flavors segment’s Zacks Consensus Estimate for revenues is pegged at $456 million for the January-March period. This projection indicates growth of 2.5% from the prior-year quarter’s $445 million. It is anticipated to report an operating profit of $116 million in the first quarter, suggesting a year-over-year rise of 7.4%. The segment is poised to grow on improved volumes, business wins and robust project pipeline. The Zacks Consensus Estimate for Frutarom’s net sales is pegged at $359 million, while operating profit is pinned at $56 million for the quarter under review.
The Zacks Consensus Estimate for the Fragrances segment’s revenues is pegged at $483 million for the soon-to-be-reported quarter, indicating a 1% decline from the $488 million recorded in the year-earlier period. The segment’s operating profit estimate is pinned at $90 million, suggesting year-over-year growth of 4.6%.
Price Performance
Over the past year, the company’s shares have lost 4.6% compared with the industry’s loss of 19%.
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 an earnings beat in their upcoming releases:
General Mills, Inc. (GIS - Free Report) has an Earnings ESP of +1.21% and carries a Zacks Rank of 2, at present.
Hormel Foods Corporation (HRL - Free Report) , a Zacks #3 Ranked stock, has an Earnings ESP of +6.51%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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What's in Store for International Flavors (IFF) Q1 Earnings?
International Flavors & Fragrances Inc. (IFF - Free Report) is scheduled to report first-quarter 2020 results after the closing bell on May 11.
Which Way are the Estimates Headed?
The Zacks Consensus Estimate for International Flavors’ first-quarter revenues is currently pegged at $1,291 million, indicating a decrease of 0.5% from the year-ago quarter. The Zacks Consensus Estimate for earnings per share is pegged at $1.60, suggesting growth of 2% year on year.
International Flavors & Fragrances Inc. Price and EPS Surprise
International Flavors & Fragrances Inc. price-eps-surprise | International Flavors & Fragrances Inc. Quote
Earnings Whispers
Our proven model predicts 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. 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 +2.19%. This is because currently the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.63 per share and $1.60, respectively.
Zacks Rank: International Flavors currently carries a Zacks Rank #3.
Key Factors
The company has been benefiting from favorable markets for flavors and fragrances supported by growth in emerging markets. Further, new business wins and the Frutarom acquisition are anticipated to have aided the company’s performance during the period under consideration. Together, International Flavors and Frutarom have created a global leader in natural taste, scent and nutrition with a broader customer base, more diversified product offerings and more exposure to end markets, with a focus on naturals and health and wellness.
International Flavors’ focus on driving efficiency through its cost and productivity initiatives, margin improvements as well as acquisition-related synergies and favorable taxes are anticipated to have boosted overall profitability during the March-end quarter. However, raw-material cost inflation and higher operating expenses might have clipped the company’s margins during this period.
The company will report financial results in two segments, Taste and Scent, incorporating the Frutarom business into the Taste segment.
The Flavors segment’s Zacks Consensus Estimate for revenues is pegged at $456 million for the January-March period. This projection indicates growth of 2.5% from the prior-year quarter’s $445 million. It is anticipated to report an operating profit of $116 million in the first quarter, suggesting a year-over-year rise of 7.4%. The segment is poised to grow on improved volumes, business wins and robust project pipeline. The Zacks Consensus Estimate for Frutarom’s net sales is pegged at $359 million, while operating profit is pinned at $56 million for the quarter under review.
The Zacks Consensus Estimate for the Fragrances segment’s revenues is pegged at $483 million for the soon-to-be-reported quarter, indicating a 1% decline from the $488 million recorded in the year-earlier period. The segment’s operating profit estimate is pinned at $90 million, suggesting year-over-year growth of 4.6%.
Price Performance
Over the past year, the company’s shares have lost 4.6% compared with the industry’s loss of 19%.
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 an earnings beat in their upcoming releases:
Flowers Foods, Inc. (FLO - Free Report) has an Earnings ESP of +7.77% and currently carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
General Mills, Inc. (GIS - Free Report) has an Earnings ESP of +1.21% and carries a Zacks Rank of 2, at present.
Hormel Foods Corporation (HRL - Free Report) , a Zacks #3 Ranked stock, has an Earnings ESP of +6.51%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>