Inter Parfums Earnings Preview

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While Inter Parfums (NAS: IPAR) missed estimates last quarter, investors hope that it will bounce back and outpace Wall Street expectations this quarter. The company will unveil its latest earnings on Wednesday, Nov. 9. Inter Parfums and its subsidiaries are in the fragrance business and manufacture and distribute an array of fragrances and fragrance-related products.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back Inter Parfums, with three of five rating it a buy and the remainder rating it a hold. Analysts don't like Inter Parfums as much as competitor Revlon overall. Wall Street has warmed to the stock over the past three months, with analysts increasing their endorsement from hold to moderate buy.
  • Revenue forecasts: On average, analysts predict $171.7 million in revenue this quarter. That would represent a rise of 42.1% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.27 per share. Estimates range from $0.25 to $0,28.

What our community says:
CAPS All-Stars are solidly backing the stock with 100% awarding it an "outperform" rating. The community at large concurs with the All-Stars with 97.1% granting it a rating of "outperform." Fools are keen on Inter Parfums, though the message boards have been quiet lately with only 47 posts in the past 30 days. Inter Parfums has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.

Management:
Inter Parfums' profit has risen year over year by an average of 29.7% over the past five quarters. The company's revenue has now risen for two straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q2

Q1

Q4

Q3

Gross Margin

61.9%

64.9%

59.0%

59.0%

Operating Margin

9.0%

19.2%

11.0%

13.7%

Net Margin

4.1%

9.6%

5.5%

7.0%

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At the time this article was published

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