International Flavors & Fragrances Beats on EPS but GAAP Results Lag
International Flavors & Fragrances (NYS: IFF) reported earnings on Feb. 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), International Flavors & Fragrances met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share contracted significantly.
Margins dropped across the board.
International Flavors & Fragrances logged revenue of $644.4 million. The five analysts polled by S&P Capital IQ wanted to see a top line of $645.6 million. GAAP sales were 2.3% higher than the prior-year quarter's $629.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.74. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.73 per share on the same basis. GAAP EPS of $0.30 for Q4 were 57% lower than the prior-year quarter's $0.69 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 37.9%, 220 basis points worse than the prior-year quarter. Operating margin was 8.9%, 450 basis points worse than the prior-year quarter. Net margin was 3.8%, 500 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $726.8 million. On the bottom line, the average EPS estimate is $1.07.
Next year's average estimate for revenue is $2.89 billion. The average EPS estimate is $4.06.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 76 members out of 90 rating the stock outperform, and 14 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 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 $63.78.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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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