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Factors Setting the Tone for Inter Parfums (IPAR) Q3 Earnings

Zacks Equity Research

Inter Parfums, Inc. IPAR is scheduled to release third-quarter 2019 results on Nov 5, after market close. Earnings of the company have surpassed the Zacks Consensus Estimate in the trailing four quarters, the average being 12%. In the last reported quarter, the company delivered a positive earnings surprise of 2.6%. Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

What to Expect?

The Zacks Consensus Estimate for third-quarter 2019 earnings has been stable in the past 30 days at 67 cents, which suggests a rise of 11.7% from the year-ago quarter’s reported figure.

Key Factors

Inter Parfums’ recently revealed its sales numbers for the third quarter. Net sales for the quarter were $191.2 million, up 7.9% on a year-over-year basis. At comparable currency exchange rates, net sales improved 9.7%. Robust European operations, along with gains from popular brands is likely to have contributed to the top line in the third quarter.

Net sales in European-based operations amounted to $143.6 million in the third quarter, up 4.2% year on year. Markedly, the European operations have been contributing a significant chunk to the company’s top line. Presence of strong brands such as Montblanc, Coach and Lanvin have been aiding this segment. This, along with effective product launches is expected to have made a positive impact on the category’s performance in the quarter under review.

In U.S. based operations, net sales improved 20.7% to $47.6 million. In this category, the company’s Prestige brands have been performing well. Sturdy performance by GUESS? brands along with launches in Abercrombie & Fitch and Hollister has likely made a positive impact.

A robust top line show might have had a favorable impact on the company’s bottom line in the third quarter. However, rising SG&A expenses, stemming from augmented advertising and promotional activities, along adverse currency rate fluctuations have been worries for the company.

Inter Parfums, Inc. Price, Consensus and EPS Surprise

 

Inter Parfums, Inc. Price, Consensus and EPS Surprise

Inter Parfums, Inc. price-consensus-eps-surprise-chart | Inter Parfums, Inc. Quote

 

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Inter Parfums 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.

Altria carries a Zacks Rank #2 and an Earnings ESP of +7.87%. You can see the complete list of today’s Zacks #1 Rank stocks here.

More Stocks Poised to Beat Earnings Estimates

Here are some other companies that you may want to consider, as our model shows that these have the right combination to post an earnings beat:

e.l.f. Beauty ELF has an Earnings ESP of +10.71% and sports a Zacks Rank #1.

Blue Apron APRN has an Earnings ESP of +9.92% and a Zacks Rank #2.

Post Holdings POST has an Earnings ESP of +5.14% and a Zacks Rank #3.

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