Inter Parfums Shares Plunged: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of perfume and cologne manufacturer Inter Parfums (NAS: IPAR) were smelling foul to investors today as shares slumped as much as 18% in intraday trading.

So what: The last thing that any company wants to do is announce disappointing quarterly results in this kind of market environment. Unfortunately, though, saying, "You know what? We're going to wait a bit longer before reporting" isn't an option. Total sales for Inter Parfums' second quarter rose 12.3% to $121.1 million and matched analysts' expectations. Earnings per share, however, fell 11% from last year to $0.16 and badly missed Wall Street's $0.22 target.

Now what: If you're looking for a bright side, management at least reaffirmed its full-year guidance. But even that wasn't much help for freaked-out investors since the company's $1.05 estimate for per-share earnings is short of the $1.08 that Wall Street analysts have been projecting. Could the rabid selling be creating a good buying opportunity? That's entirely possible, but with the whole market selling off, there are other stocks that I currently like better than Inter Parfums.

Want to keep up to date on Inter Parfums?Add it to your watchlist.



At the time this article was published 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.Fool contributorMatt Koppenhefferdoes not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting hisCAPS portfolio, or you can follow Matt on Twitter@KoppTheFoolorFacebook. The Fool'sdisclosure policyprefers dividends over a sharp stick in the eye.

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