What You Need To Know Ahead of International Flavors & Fragrances' Earnings Release
With a market cap of $19.1 billion, International Flavors & Fragrances Inc. (IFF) is a global leader in high-value ingredients and solutions across the food, beverage, scent, health, and pharmaceutical industries. Operating through four core segments - Nourish; Health & Biosciences; Scent; and Pharma Solutions, IFF delivers innovative, biotechnology-driven products to customers worldwide.
The New York-based company is expected to release its fiscal Q1 2025 earnings results after the market closes on Tuesday, May 6. Ahead of this event, analysts project IFF to report an adjusted EPS of $1.08, a decrease of 4.4% from $1.13 in the year-ago quarter. It has surpassed Wall Street's bottom-line estimates in three of the last four quarterly reports while missing on another occasion. In Q4 2024, IFF beat the consensus adjusted EPS estimate by a margin of 24.4%.
For fiscal 2025, analysts forecast the ingredients producer to report adjusted EPS of $4.17, down 3.3% from $4.31 in fiscal 2024. However, adjusted EPS is anticipated to grow 7.4% year-over-year to $4.48 in fiscal 2026.
IFF has declined 12.1% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 5.5% gain and the Materials Select Sector SPDR Fund's (XLB) 8.6% drop over the same time frame.
Despite reporting stronger-than-expected Q4 2024 adjusted EPS of $0.97 and revenue of $2.8 billion on Feb. 18, IFF's shares dropped 5.2% the following day due to weak 2025 guidance, projecting sales between $10.6 billion and $10.9 billion, which is below 2024’s $11.5 billion. Investors were also concerned by rising R&D and selling and administrative expenses, which put pressure on margins, as evidenced by a slight dip in the adjusted EBITDA margin to 17% for Q4.
Analysts' consensus view on International Flavors & Fragrances stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 19 analysts covering the stock, 13 suggest a "Strong Buy," one gives a "Moderate Buy," four recommend a "Hold," and one "Strong Sell." As of writing, IFF is trading below the average analyst price target of $90.16.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.