## Intl Flavors & Fragrances (IFF) Earnings Preview: What to Expect on November 5th
The market is eagerly awaiting Intl Flavors & Fragrances (IFF)’s quarterly earnings announcement, scheduled for Tuesday, November 5th, 2024. As investors prepare for the release, several key factors will be in focus, including the company’s earnings per share (EPS), guidance for the next quarter, and its overall financial health.
Analyst Expectations and Historical Performance:
Analysts are projecting that IFF will report an EPS of $1.08 for the quarter. It’s worth noting that last quarter, IFF exceeded EPS estimates by $0.16, but this was followed by a 2.35% drop in the share price the next day. This highlights the importance of guidance, which can significantly influence stock prices.
Here’s a breakdown of IFF’s recent earnings performance:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | $1.00 | $1.16 | -2.0% |
| Q1 2024 | $0.86 | $1.13 | 6.0% |
| Q4 2023 | $0.75 | $0.72 | -6.0% |
| Q3 2023 | $0.75 | $0.89 | -1.0% |
Investor Sentiment and Analyst Insights:
To gain a deeper understanding of market expectations, it’s essential to consider analyst insights. IFF currently holds a consensus rating of “Outperform” based on 9 analyst ratings. The average one-year price target stands at $110.44, indicating a potential upside of 11.63%.
Comparing IFF to its Peers:
Let’s examine how IFF stacks up against its competitors in the industry. Three key players, PPG Indus, RPM Intl, and DuPont de Nemours, offer valuable benchmarks for comparison.
*
PPG Indus:
Analysts favor an “Outperform” trajectory for PPG Indus, with an average one-year price target of $146.5, representing a potential upside of 48.08%.*
RPM Intl:
Analysts lean towards a “Neutral” trajectory for RPM Intl, with an average one-year price target of $136.12, suggesting a potential upside of 37.59%.*
DuPont de Nemours:
Analyst assessments favor a “Neutral” trajectory for DuPont de Nemours, with an average one-year price target of $89.0, indicating a potential downside of 10.04%.Key Financial Metrics Comparison:
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Intl Flavors & Fragrances | Outperform | -1.37% | $1.07B | 1.19% |
| PPG Indus | Outperform | -1.49% | $1.91B | 6.02% |
| RPM Intl | Neutral | -2.14% | $836.67M | 8.79% |
| DuPont de Nemours | Neutral | 2.49% | $1.18B | 0.76% |
Key Takeaways:
* IFF ranks at the bottom for revenue growth among its peers.
* It also occupies the bottom spot for Gross Profit.
* However, it stands at the top for Return on Equity.
Understanding IFF’s Business:
As the world’s largest specialty ingredients producer, IFF provides ingredients for a wide range of industries, including food, beverage, health, household goods, personal care, and pharmaceuticals. IFF’s expertise lies in developing proprietary formulations and partnering with customers to deliver customized solutions.
The Nourish Segment:
This segment, which generates roughly half of IFF’s revenue, is a leading flavor producer and also offers texturants, plant-based proteins, and other ingredients.The Health and Biosciences Business:
This segment contributes about one-fourth of IFF’s revenue and is a global leader in probiotics and enzymes.Fragrances:
IFF is also a leading fragrance producer globally.Key Financial Indicators:
*
Market Capitalization:
IFF’s market capitalization surpasses the industry average, indicating a strong market presence and significant size.*
Revenue Growth:
While IFF’s revenue growth has experienced challenges over the past three months, with a decline of approximately -1.37% as of June 30, 2024, this is lower than the average among its peers in the Materials sector.*
Net Margin:
IFF’s net margin is below industry averages, indicating potential challenges in maintaining strong profitability.*
Return on Equity (ROE):
IFF’s ROE falls below industry benchmarks, suggesting potential difficulties in efficiently utilizing equity capital.*
Return on Assets (ROA):
IFF’s ROA is below industry averages, indicating challenges in efficiently utilizing assets.*
Debt Management:
IFF’s debt-to-equity ratio is below industry norms, indicating a sound financial structure.Conclusion:
As IFF prepares to release its quarterly earnings, investors are looking for signs of positive performance and optimistic guidance. While IFF has faced revenue growth challenges, its strong market position and focus on innovation could drive future growth. The company’s financial health will be closely monitored, with particular attention to revenue growth, net margin, and return on equity.
To track all earnings releases for Intl Flavors & Fragrances, visit the earnings calendar on our site.
