International Flavors & Fragrances Shares Stink Today: What You Need to Know
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 flavor maker International Flavors & Fragrances (NYS: IFF) fell 10% today after missing earnings estimates.
So what: Revenue was up 6% from a year ago to $713.8 million, but analysts were expecting something closer to $721.8 million. Net income was $82.2 million, or $1 per share, $0.04 below estimates.
Now what: Management said weak performance in the fragrance division was the driver of weak earnings. The miss doesn't look wide enough to warrant a 10% drop today, so I think this is a great buying opportunity for investors looking to jump in. The company pays a 2.1% dividend and shares are trading at just 15 times trailing earnings, reasonable if growth continues.
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At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.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.
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