International Flavors & Fragrances
The 10-second takeaway
For the quarter ended March 31 (Q1), International Flavors & Fragrances missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew.
Margins increased across the board.
International Flavors & Fragrances reported revenue of $727.8 million. The three analysts polled by S&P Capital IQ looked for sales of $751.5 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.19. The six earnings estimates compiled by S&P Capital IQ averaged $1.12 per share. Non-GAAP EPS of $1.19 for Q1 were 19% higher than the prior-year quarter's $1.00 per share. GAAP EPS of $1.10 for Q1 were 11% higher than the prior-year quarter's $0.99 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 42.8%, 260 basis points better than the prior-year quarter. Operating margin was 18.9%, 170 basis points better than the prior-year quarter. Net margin was 12.5%, 110 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $757.6 million. On the bottom line, the average EPS estimate is $1.18.
Next year's average estimate for revenue is $2.97 billion. The average EPS estimate is $4.40.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 76 members out of 94 rating the stock outperform, and 18 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 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 $72.86.
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