What to Expect From International Flavors & Fragrances' Q3 2024 Earnings Report

With a market cap of around $27 billion, International Flavors & Fragrances Inc. (IFF) operates in the specialty chemicals sector. It provides high-value ingredients and solutions for the food, beverage, personal care, and health & wellness industries. The New York-based company is scheduled to release its fiscal Q3 earnings results on Monday, Nov. 4.

Ahead of this event, analysts expect the food ingredients maker to report a profit of $1.05 per share, up nearly 18% from $0.89 per share in the previous year's quarter. The company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on another occasion. IFF exceeded the consensus EPS estimate by 14.9% in the most recent quarter.

For fiscal 2024, analysts expect IFF to report EPS of $4.23, up 26.7% from $3.34 in fiscal 2023. 

Shares of International Flavors & Fragrances jumped 54.5% over the past 52 weeks, outperforming the broader S&P 500 Index's ($SPX) 33.6% rise and the Materials Select Sector SPDR Fund's (XLB) 22.8% return over the same period.  

Despite reporting better-than-expected Q2 adjusted EPS of $1.16 and revenue of $2.9 billion on Aug. 6, IFF's stock fell 2.4% the next day due to concerns over declining sales in key segments like Nourish, which saw a 5.5% drop year-over-year. Additionally, rising research and development as well as administrative costs, which increased by 7% and 11% respectively, weighed on profitability. The company’s lowered cash generation and high debt levels also raised investor concerns about long-term financial stability.

Analysts' consensus rating on IFF stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 19 analysts covering the stock, opinions include 10 "Strong Buys," eight "Holds," and one "Strong Sell." This consensus is more bullish than three months ago, with eight analysts suggesting a "Strong Buy." The average analyst price target of $105.70 suggests only 1.3% potential upside from current levels. 

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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.