IFF Hits a New 52-Wk High


Shares of International Flavors & Fragrances Inc. (IFF) touched a new 52-week high of $88.84 during its trading session on Nov 13. This denotes an increase over the previous high of $87.68 reached the previous day, on Nov 12.  

International Flavors & Fragrances closed the trading day on Nov 13 at $88.82, reflecting a solid year-to-date return of 45.6%. The trading volume for the session was 0.35 million shares. Further upside potential exists for this Zacks Rank #3 (Hold) flavors and fragrances producer, as can be deduced from its earnings estimate revisions in the last 30 days and expected earnings growth of 8.5% for the next five years.

Growth Drivers

International Flavors & Fragrances fared well in the third quarter 2013. Shares of the company since the earnings release on Nov 5 has risen 5.5% and upward revision in earnings estimate were also recorded. Earnings per share in the quarter came in at $1.22, reflecting an increase of 13.0% over the year-ago quarter and 4 cents above the Zacks Consensus Estimate.

Revenue grew by 5% or 4% on constant currency. Geographically, business flourished in all operating regions, except for flat results in North America. Growth in emerging markets was appreciable at 8%. Adjusted operating margin at 19.4% was 50 basis points above the year-ago quarter.
The company remains focused on rewarding its shareholders through dividend payments and share buybacks. Long-term growth prospects are bright for International Flavors & Fragrances on the back of new business wins, geographical diversification, wide product lines, continuous accomplishments in research and intense consumer insight.

For 2013, management of International Flavors & Fragrances anticipates overall results to be in-line with the long-term targets.

Estimate Revisions Show Potency

Over the last 60 days, the Zacks Consensus Estimate for International Flavors & Fragrances has increased by 0.5% to $4.45 for 2013 and remained stable at $4.88 for 2014.

International Flavors & Fragrances currently has a market capitalization of $7.3 billion. Other stocks to watch out for in the industry are Ecolab Inc. (ECL), Ferro Corporation (FOE) and HB Fuller Co. (FUL) each of which carry a Zacks Rank #2 (Buy).

Read the Full Research Report on ECL
Read the Full Research Report on IFF
Read the Full Research Report on FOE
Read the Full Research Report on FUL

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