Why Inter Parfums (IPAR) Shares Are Getting Obliterated Today
What Happened:
Shares of fragrance and perfume company Inter Parfums (NASDAQ:IPAR) fell 14.2% in the pre-market session after the company reported fourth-quarter results with EPS missing expectations. Though revenue beat, however, topline growth deceleration. Full year revenue guidance also fell short of expectations implying 10% growth (vs 21.9% in FY2023). Management provided some insights into the weak guidance, adding, "The political climate both in the Middle East and throughout Eastern Europe leads us to keep our guidance unchanged due to lack of visibility. As the year unfolds and we attain greater clarity, we will revisit our guidance." Overall, this was a mediocre quarter for Inter Parfums.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Inter Parfums? Access our full analysis report here, it's free.
What is the market telling us:
Inter Parfums's shares are not very volatile than the market average and over the last year have had only 9 moves greater than 5%. Moves this big are very rare for Inter Parfums and that is indicating to us that this news had a significant impact on the market's perception of the business.
Inter Parfums is up 2.1% since the beginning of the year, and at $145.07 per share it is trading close to its 52-week high of $157.59 from April 2023. Investors who bought $1,000 worth of Inter Parfums's shares 5 years ago would now be looking at an investment worth $1,966.
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