Inter Parfums (IPAR) Queued for Q3 Earnings: Things to Note
Inter Parfums, Inc. IPAR is likely to register a bottom-line decline when it reports third-quarter 2023 earnings on Nov 7. The Zacks Consensus Estimate for quarterly earnings has moved up by a couple of cents in the past 30 days to $1.27 per share. The projection suggests a decline of 2.3% from that reported in the year-ago quarter.
The fragrances and related products company has a trailing four-quarter earnings surprise of 45.9%, on average. IPAR reported an earnings surprise of 22.5% in the last reported quarter.
Things To Consider
Inter Parfums has been grappling with higher selling, general and administrative (SG&A) expenses, which is putting pressure on profits. Management has been undertaking incremental costs toward product launches and brand awareness. The persistence of these factors might be a concern for the company’s third-quarter 2023 results.
Nevertheless, Inter Parfums has been reaping benefits from the booming fragrance market globally. Strength in the company’s brand portfolio is yielding. Also, management has been on track to roll out new products to drive portfolio strength. IPAR is also benefiting from strategic partnerships to boost assortment strength.
Inter Parfums, Inc. Price and EPS Surprise
Inter Parfums, Inc. price-eps-surprise | Inter Parfums, Inc. Quote
A Look at Q3 Sales
Inter Parfums’ third-quarter 2023 net sales rallied 31% to $368 million compared with $280 million reported in the year-ago quarter. At comparable foreign currency rates, quarterly net sales increased 27% year over year. During the third quarter, Inter Parfums’ Europe-based product sales came in at $233 million, up 18% from 2022 levels. U.S.-based product sales amounted to $135 million, increasing 64% from third-quarter 2022 figures.
The company’s European operations saw sales growth across all brands. IPAR’s three most prominent brands, Coach, Montblanc and Jimmy Choo, achieved sales growth of 32%, 20% and 6%, respectively in the quarter. Inter Parfums’ recent product launches, like Jimmy Choo Rose Passion, Montblanc Signature Absolue and Explorer Platinum and Coach Green and Love, delivered impressive performance. Apart from this, IPAR’s mid-sized brands, including Lanvin, Kate Spade, Rochas, Van Cleef & Arpels and Karl Lagerfeld, remained strong.
Growth in its U.S. operations was fueled by impressive performances across Donna Karan/DKNY, GUESS and Ferragamo, which saw sales growth of 230%, 59% and 55%, respectively. In the quarter, the company launched the GUESS Originals trio of fragrances and Hollister’s Feelin’ Good duo. Management initiated the Phase one distribution rollout of the Abercrombie & Fitch Fierce. Apart from this, Inter Parfums introduced its first brand extension for DKNY, Be Delicious Orchard St.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Inter Parfums 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Inter Parfums currently carries a Zacks Rank #2 and has an Earnings ESP of +8.09%.
Other Stocks With a Favorable Combination
Here are some companies you may want to consider, as our model shows that these, too, have the right combination of elements to deliver an earnings beat.
Ollie's Bargain Outlet Holdings, Inc. OLLI has an Earnings ESP of +3.75% and a Zacks Rank #2. The company is slated to witness top and bottom-line growth when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for OLLI’s earnings has remained unchanged in the past 30 days at 43 cents, suggesting growth of 16.2% from the year-ago quarter’s reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ollie's Bargain’s quarterly revenues is pegged at about $468.8 million, which suggests a growth of 12.1% from the figure reported in the prior-year quarter. OLLI delivered an earnings surprise of 1.3%, on average, in the trailing four quarters.
International Flavors & Fragrances IFF has an Earnings ESP of +7.43% and a Zacks Rank #3. The company is slated to witness a top-line decline when it reports third-quarter 2023 results. The Zacks Consensus Estimate for IFF’s quarterly revenues is pegged at around $2.8 billion, suggesting a decline of 9.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for International Flavors & Fragrances’ quarterly earnings has moved down by 9.5% over the past 30 days to 76 cents per share, which suggests a decline of 44.1% from the year-ago quarter’s reported number. IFF delivered a negative earnings surprise of 4.1%, on average, in the trailing four quarters.
J. M. Smucker SJM has an Earnings ESP of +0.27% and a Zacks Rank #3. The company is slated to witness bottom-line growth when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for J. M. Smucker’s quarterly earnings has remained unchanged over the past 30 days at $2.47 per share, which suggests growth of 2.9% from the year-ago quarter’s reported number. SJM delivered an earnings surprise of 7.3%, on average, in the trailing four quarters.
The Zacks Consensus Estimate for J. M. Smucker’s quarterly revenues is pegged at about $2 billion, which suggests a decline of 11.3% from the figure reported in the prior-year quarter.
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
The J. M. Smucker Company (SJM) : Free Stock Analysis Report
Inter Parfums, Inc. (IPAR) : Free Stock Analysis Report
Ollie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report
