What is in store for International Flavors (IFF) fourth quarter results?
International Flavors and Fragrances Inc. The IFF is expected to release its fourth quarter 2020 results after the closing bell on February 10.
What direction are the estimates going?
Zacks’ consensus estimate for Q4 2020 revenue is currently set at $ 1.27 billion, which indicates a 0.93% year-over-year decline. Zacks’ consensus estimate for fourth quarter earnings per share is set at $ 1.19, which suggests a decline of 18.5% year over year.
International Flavors forecasts net sales for the end-December quarter of $ 1,270 million, compared to $ 1,284 million for the previous year quarter. On a currency neutral basis, net sales are expected to increase by around 2%, excluding the 4 percentage point impact of the extra selling week over the prior year period. In addition, management estimates to report operating income of approximately $ 100 million for the fourth quarter. Adjusted operating income for the October through December quarter is expected to be approximately $ 203 million. Cost and productivity initiatives, improved margins, synergies from acquisitions and favorable taxes are likely to have boosted overall profitability in the quarter under review.
Additionally, International Flavors is expected to have benefited from significant demand for packaged food, beverages, and personal care and hygiene products amid the pandemic during the end of December quarter. The company benefited from favorable markets for flavors and fragrances, supported by demand for a variety of consumer products and growth in emerging markets. In addition, the new business gains and the acquisition of Frutarom probably contributed to the performance of the company during the period considered.
Nonetheless, the pressure prevailing in the Fine Perfumes and Foodservice categories in emerging markets due to the pandemic could have had an impact on the company’s results in the end of December quarter.
Zacks’ consensus estimate for quarterly revenue for the Taste segment is set at $ 768 million, which indicates an increase of 78.6% from the $ 430 million in the previous year’s quarter. It is expected to report operating income of $ 110 million in the fourth quarter, suggesting a 39.1% year-over-year jump. The segment should benefit from robust growth in health-oriented products as well as an improvement in Natural Products Solutions and Salted Solutions.
Zacks’ consensus estimate for Perfume segment revenue is set at $ 476 million, calling for a 0.4% decline from the prior year quarter. The segment’s operating profit estimate is set at $ 75 million, suggesting year-over-year growth of 2.7%. This segment is benefiting from robust growth in Consumer Perfumery.
International Flavors & Fragrances Inc. Prizes and EPS Surprise
International Flavors & Fragrances Inc. price-eps-surprise | Devis International Flavors & Fragrances Inc.
Whispers of gains
Our proven model conclusively predicts increased profits for International Flavors this season. The combination of a positive earnings ESP and a Zacks # 1 (strong buy), 2 (buy) or 3 (hold) ranking increases the odds of beating the winnings.
You can discover the best stocks to buy or sell before they are flagged with our ESP Earnings Filter.
ESP on income: The PSE of gains for international flavors is + 0.91%.
Zack Rank: International Flavors currently holds a Zacks Rank # 3 (Hold).
Over the past three months, the company’s shares have gained 17% against industry growth of 5.8%.
Actions to consider
Here are some basic consumer stocks that you might want to consider, as our model shows that they have the right mix of items to show a profit beat in their next releases:
Brands Newell Inc. NWL has a revenue ESP of + 2.70% and currently sports a Zacks Rank # 1. You can see The full list of today’s Zacks # 1 Rank stocks here.
International service company SCI has an ESP on earnings of + 3.68% and currently has a Zacks rank of 1.
Monster Beverage Corporation MNST, a # 3 ranked stock of Zacks, has a revenue ESP of + 21.81%.
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