International Flavors & Fragrances
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), International Flavors & Fragrances met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share contracted significantly.
Margins dropped across the board.
International Flavors & Fragrances logged revenue of $644.4 million. The five analysts polled by S&P Capital IQ wanted to see a top line of $645.6 million. GAAP sales were 2.3% higher than the prior-year quarter's $629.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.74. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.73 per share on the same basis. GAAP EPS of $0.30 for Q4 were 57% lower than the prior-year quarter's $0.69 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.9%, 220 basis points worse than the prior-year quarter. Operating margin was 8.9%, 450 basis points worse than the prior-year quarter. Net margin was 3.8%, 500 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $726.8 million. On the bottom line, the average EPS estimate is $1.07.
Next year's average estimate for revenue is $2.89 billion. The average EPS estimate is $4.06.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 76 members out of 90 rating the stock outperform, and 14 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give International Flavors & Fragrances a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on International Flavors & Fragrances is outperform, with an average price target of $63.78.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.