Yahoo Finance What's in Store for International Flavors' (IFF) Q1 Earnings?
International Flavors & Fragrances Inc. IFF is scheduled to report first-quarter 2024 results on May 6, after the closing bell.
Q4 Performance
In the last reported quarter, IFF’s earnings and revenues declined on a year-over-year basis. The company missed the Zacks Consensus Estimate for the top and bottom lines.
International Flavors has surpassed earnings estimates in one of the trailing four quarters and missed in the other three, the average negative surprise being 2.7%.
International Flavors & Fragrances Inc. Price and EPS Surprise
International Flavors & Fragrances Inc. price-eps-surprise | International Flavors & Fragrances Inc. Quote
Q1 Estimates
The Zacks Consensus Estimate for first-quarter revenues is pegged at $2.81 billion, indicating a decline of 7.3% from the year-ago reported figure. The consensus estimate for earnings for the December-end quarter is pegged at 84 cents per share, suggesting a year-over-year decline of 3.5%.
Key Factors to Note
International Flavors has been bearing the brunt of low consumer spending and customer destocking for the past few quarters. These conditions are anticipated to have continued and impacted the company’s performance in the to-be-reported quarter.
High raw material, energy and labor costs are likely to have impacted the company’s margins in the first quarter. Labor shortages and supply-chain disruptions are expected to have impacted International Flavors’ production in the to-be-reported quarter. Despite its pricing actions and cost-reduction efforts, these factors are likely to have weighed on the margins in the quarter under review.
Segmental Estimates
In the fourth quarter of 2023, the company reported a volume decline in the Functional Ingredients business, which falls under the Nourish segment. Even though the company had earlier anticipated volumes to pick up in the later part of the year, this did not materialize. This weakness in the Functional Ingredients business is expected to have been a drag on the company’s overall volumes in the first quarter.
Our model estimates the Nourish segment’s first-quarter sales to be down 11.5% year over year to $1.46 billion. The projection for the segment’s operating EBITDA is pegged at $180 million, indicating a fall of 13.1% from the year-ago quarter’s actual.
We expect the Scent segment’s sales to increase 0.1% year over year to $608 million. This growth is likely to have been driven by the ongoing momentum in Consumer Fragrance, as well as improvement in Fine Fragrance. Our estimate for the segment’s quarterly operating EBITDA is $101 million, suggesting a year-over-year dip of 3.5%.
The projection for the Health & Biosciences segment’s sales for the first quarter is pegged at $511 million, indicating a 0.5% increase from the year-ago quarter’s reported figure. We expect operating EBITDA to increase 7.1% to $142 million in the quarter.
The Pharma Solutions segment’s sales are projected to fall 12% year over year to $223 million. The segment's operating EBITDA is expected to rise 1.8% to $52 million from the year-ago quarter’s reported number.
What Our Quantitative Model Predicts
Our model predicts an earnings beat for International Flavors 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. That is precisely the case here, as you see below.
Earnings ESP: The Earnings ESP for IFF is +15.59%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: International Flavors currently carries a Zacks Rank of 3.
Price Performance
In the past year, IFF shares have lost 8.7% compared with the industry’s 24% decline.
Image Source: Zacks Investment Research
Other Stocks to Consider
Here are some other Consumer Staples stocks, which, according to our model, have the right combination of elements to post an earnings beat in their upcoming releases:
Olaplex Holdings, Inc. OLPX, scheduled to release first-quarter 2024 earnings on May 2, has an Earnings ESP of +9.09% and a Zacks Rank of 3.
The consensus estimate for Olaplex Holdings’ first-quarter earnings has been unchanged in the past 30 days. The Zacks Consensus Estimate for OLPX’s earnings for the quarter is pegged at 3 cents. It has a trailing four-quarter average earnings surprise of 2.5%.
Church & Dwight Co., Inc. CHD, scheduled to release first-quarter 2024 earnings on May 2, currently has an Earnings ESP of +1.00% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Church & Dwight Co.’s first-quarter earnings has been unchanged in the past 30 days. The consensus estimate for CHD’s earnings for the first quarter is pegged at 86 cents. It has a trailing four-quarter average earnings surprise of 9.6%.
Ollie's Bargain Outlet Holdings, Inc. OLLI, scheduled to release first-quarter earnings on Jun 6, currently has an Earnings ESP of +0.77% and a Zacks Rank of 3.
The Zacks Consensus Estimate for OLLI’s first-quarter earnings is pegged at 65 cents. The consensus estimate for the company’s quarterly earnings has moved north by 2% in the past 30 days. It has an average trailing four-quarter earnings surprise of 7.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
International Flavors & Fragrances Inc. (IFF) : Free Stock Analysis Report
Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report
Ollie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report
Olaplex Holdings, Inc. (OLPX) : Free Stock Analysis Report
