Inter Parfums profit up on one-time gain
Inter Parfums 4Q profit up on one-time gain; adjusted results still beat market expectations
NEW YORK (AP) -- Inter Parfums Inc. reported Tuesday that its fourth quarter net income jumped sharply, due largely to a one-time gain.
The fragrance company earned $99.6 million, or $3.24, for the period that ended Dec. 31. That's compared to $4.1 million, or 13 cents per share, earned in the same quarter of the prior year. The most recent quarter included a $198.8 million gain from the termination of a license agreement. After adjusting for that, it earned 21 cents per share in the most recent quarter.
Inter Parfums total revenue decreased 6 percent to $176.9 million from $189.1 million, as strong sales in the U.S. were offset by weak sales in Europe.
Analysts polled by FactSet were expecting the company to earn 16 cents per share on revenue of $174.2 million.
Company Chairman and CEO Jean Madar noted Inter Parfums hit record sales and earnings in the past year, despite not having any new major product launches. It also added two new license agreements with luxury fashion brands Karl Lagerfeld and Alfred Dunhill. Madar said the addition of those brands is representative of the company's growth strategy as it moves into the next phase of its evolution.
The company stood by its full-year forecast earning 90 to 92 cents per share on revenue of $480 million. Analysts had forecast earnings of 91 cents per share on revenue of $478 million.
Inter Parfums also said that its board approved a 50 percent increase in its annual dividend to 48 cents per share. The next quarterly dividend of 12 cents per share will be paid on April 15 to shareholders of record on March 29.
The New York-based company's shares fell 73 cents, nearly 3 percent, to $24 in after-hours trading. The stock, however, is up about 50 percent in the past year.
