International Flavors & Fragrances (IFF) Q1 Earnings Peek
Zacks Investment Research | May 05, 2016 07:24AM ET
International Flavors & Fragrances Inc. (NYSE:IFF) is scheduled to report first-quarter 2016 results on May 9, after the market closes. The Zacks Consensus Estimate for the quarter is pegged at $1.41.
The company outperformed estimates in three of the four trailing quarters, and lagged in one with an average negative earnings surprise of 0.72%.
Last quarter, International Flavors & Fragrances’ earnings of $1.05 per share came in below the Zacks Consensus Estimate of $1.15 by 8.7%. Let us see how things are shaping up for this quarter.
Factors to Affect Q1 Results
We believe that International Flavors & Fragrances is not immune to the risks arising from uncertain global economic conditions and adverse movements of foreign currencies. For 2016, the company expects adverse foreign currency movements to reduce revenues by 2.5% and earnings per share by 5%.
In addition, stiff competition in the industry might impede the company’s growth momentum. To add to its woes, the company is exposed to risks arising from disruptions in supply or quality of ingredients as well as rising prices.
However, we believe the negative impacts of these headwinds will be partially offset by the company’s growth strategies for the near term. The company is constantly striving to expand its product portfolio through innovation as well as acquisitions of other important businesses. Also, business expansion in emerging markets and rewarding shareholders handsomely through dividend payments and share buybacks remain priorities for International Flavors & Fragrances.
Earnings Whispers
Our proven model does not conclusively show that International Flavors & Fragrances is likely to beat earnings this quarter. That is because a stock needs to have both a positive Zacks Investment Research
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