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What's in Store for International Flavors' (IFF) Q1 Earnings?

·4 min read

International Flavors & Fragrances Inc. IFF is scheduled to report first-quarter 2021 results after the closing bell on May 10.

Which Way are the Estimates Headed?

The Zacks Consensus Estimate for first-quarter 2021 revenues is currently pegged at $2.42 billion, indicating year-over-year growth of 79.5%. The Zacks Consensus Estimate for first-quarter earnings per share is pinned at $1.50, suggesting a year-over-year decline of 7.4%.

Key Factors

International Flavors’ cost cutting and productivity improvement initiatives, acquisition-related synergies as well as favorable taxes are likely to have boosted overall profitability during first-quarter 2021.

International Flavors is anticipated to have benefited from significant demand for packaged food, beverage and personal care and hygiene products amid the pandemic during the March-end quarter. The company has been benefiting from favorable markets for flavors and fragrances, supported by demand for a variety of consumer products and growth in emerging markets. Further, new business wins and the Frutarom acquisition are likely to have aided the company’s performance during the period under consideration.

Nevertheless, prevalent pressure in the Fine Fragrance and Food Service categories across emerging markets on account of the pandemic might have impacted the company’s performance in the January-March quarter. Moreover, escalating manufacturing and raw material costs are expected to have dented the company’s margin during the quarter under review.

The Zacks Consensus Estimate for the Taste segment’s quarterly revenues is pegged at $848 million, indicating year-over-year growth of 2.2%. It is anticipated to report an operating profit of $155 million, suggesting a year-over-year increase of 13%. The segment is poised to benefit from robust growth in health-oriented products as well as an improvement in Natural Product Solutions and Savory Solutions.

The Zacks Consensus Estimate for the Scent segment’s revenues is pegged at $528 million, calling for growth of 2.1% from the year-earlier quarter. The segment’s operating profit estimate is pinned at $107 million, suggesting year-over-year growth of 2%. This segment is benefiting from robust growth in Consumer Fragrance.

International Flavors & Fragrances Inc. Price and EPS Surprise

International Flavors & Fragrances Inc. Price and EPS Surprise
International Flavors & Fragrances Inc. Price and EPS Surprise

International Flavors & Fragrances Inc. price-eps-surprise | International Flavors & Fragrances Inc. Quote

Earnings Whispers

Our proven model doesn’t conclusively predict an earnings beat for International Flavors 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for International Flavors is -5.49%.

Zacks Rank: International Flavors currently carries a Zacks Rank #3 (Hold).

Price Performance

Over the past three months, the company’s shares have gained 15% against the industry’s loss of 2.9%.

Stocks to Consider

Here are a few Consumer Staples stocks which you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

PepsiCo, Inc. PEP has an Earnings ESP of +0.40% and currently carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.

Energizer Holdings, Inc. ENR has an Earnings ESP of +4.17% and carries a Zacks Rank of 3, at present.

Monster Beverage Corporation MNST, a Zacks #3 Ranked stock, has an Earnings ESP of +0.41%.

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