International Flavors & Fragrances (NYSE:IFF) Announces Quarterly Earnings Results, Beats Expectations By $0.17 EPS

Key Points

• Earnings beat: IFF reported EPS of $1.25 vs. $1.08 expected and revenue of $2.74B vs. $2.64B expected, though revenue was down 3.6% year-over-year and net margin was -3.20%.
• Dividend announced: the company declared a $0.40 quarterly dividend ($1.60 annualized, ~2.3% yield) with an ex-dividend/record date of June 18, while the reported dividend payout ratio was -116.79%, signaling coverage concerns.
• Insider buying and analyst view: Director Paul J. Fribourg bought 142,000 shares (~$9.96M), increasing his stake by 6.23%, and analysts hold a consensus "Moderate Buy" rating with a $87.50 average price target (12 Buys, 4 Holds, 1 Sell).

International Flavors & Fragrances (NYSE:IFF - Get Free Report) announced its quarterly earnings data on Tuesday. The specialty chemicals company reported $1.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.08 by $0.17, Zacks reports. International Flavors & Fragrances had a negative net margin of 3.20% and a positive return on equity of 7.67%. The company had revenue of $2.74 billion during the quarter, compared to analysts' expectations of $2.64 billion. During the same quarter in the prior year, the company earned $1.20 EPS. International Flavors & Fragrances's revenue was down 3.6% compared to the same quarter last year.

International Flavors & Fragrances Trading Up 1.0%

Shares of International Flavors & Fragrances stock traded up $0.70 during mid-day trading on Tuesday, hitting $70.79. The stock had a trading volume of 2,021,741 shares, compared to its average volume of 1,718,222. The firm has a 50-day moving average of $72.99 and a two-hundred day moving average of $70.07. International Flavors & Fragrances has a 12-month low of $59.14 and a 12-month high of $84.45. The company has a quick ratio of 0.85, a current ratio of 1.42 and a debt-to-equity ratio of 0.33. The firm has a market cap of $18.08 billion, a P/E ratio of -51.67, a price-to-earnings-growth ratio of 1.91 and a beta of 0.93.

International Flavors & Fragrances Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, July 10th. Stockholders of record on Thursday, June 18th will be paid a $0.40 dividend. The ex-dividend date of this dividend is Thursday, June 18th. This represents a $1.60 annualized dividend and a dividend yield of 2.3%. International Flavors & Fragrances's dividend payout ratio is -116.79%.

Wall Street Analyst Weigh In

Several analysts recently issued reports on IFF shares. Berenberg Bank dropped their price objective on shares of International Flavors & Fragrances from $78.30 to $77.50 and set a "hold" rating for the company in a research note on Thursday, February 5th. Barclays dropped their price objective on shares of International Flavors & Fragrances from $91.00 to $80.00 and set an "overweight" rating for the company in a research note on Tuesday, April 14th. Wells Fargo & Company upped their price objective on shares of International Flavors & Fragrances from $85.00 to $100.00 and gave the company an "overweight" rating in a research note on Friday, February 13th. Bank of America upped their price objective on shares of International Flavors & Fragrances from $84.00 to $88.00 and gave the company a "buy" rating in a research note on Thursday, January 8th. Finally, Mizuho upped their price objective on shares of International Flavors & Fragrances from $75.00 to $85.00 and gave the company an "outperform" rating in a research note on Thursday, February 12th. Twelve investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $87.50.

Insider Buying and Selling at International Flavors & Fragrances

In other news, Director Paul J. Fribourg purchased 142,000 shares of the company's stock in a transaction dated Thursday, March 12th. The stock was acquired at an average price of $70.13 per share, with a total value of $9,958,460.00. Following the purchase, the director directly owned 2,422,730 shares in the company, valued at approximately $169,906,054.90. This represents a 6.23% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. 1.07% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On International Flavors & Fragrances

A number of hedge funds have recently made changes to their positions in IFF. Geneos Wealth Management Inc. boosted its position in shares of International Flavors & Fragrances by 55.7% during the 1st quarter. Geneos Wealth Management Inc. now owns 587 shares of the specialty chemicals company's stock worth $46,000 after purchasing an additional 210 shares during the period. Transamerica Financial Advisors LLC boosted its position in shares of International Flavors & Fragrances by 884.1% during the 2nd quarter. Transamerica Financial Advisors LLC now owns 679 shares of the specialty chemicals company's stock worth $50,000 after purchasing an additional 610 shares during the period. EFG International AG purchased a new position in shares of International Flavors & Fragrances during the 4th quarter worth approximately $73,000. Kestra Advisory Services LLC purchased a new position in shares of International Flavors & Fragrances during the 4th quarter worth approximately $104,000. Finally, Quarry LP boosted its position in shares of International Flavors & Fragrances by 22.8% during the 3rd quarter. Quarry LP now owns 1,848 shares of the specialty chemicals company's stock worth $114,000 after purchasing an additional 343 shares during the period. Hedge funds and other institutional investors own 96.02% of the company's stock.

About International Flavors & Fragrances

International Flavors & Fragrances Inc NYSE: IFF is a global leader in the creation and production of flavors, fragrances, cosmetic actives and nutritional lipids. The company develops taste and scent solutions for a wide array of end markets including food and beverage, personal care, household goods and pharmaceutical products. Its portfolio spans natural and nature-identical flavors, fine fragrances, functional ingredients for skin and hair care, and specialty oils that enhance nutritional value and sensory appeal.

IFF's research and development network comprises innovation centers in North America, Europe, Asia-Pacific and Latin America, where multidisciplinary teams collaborate on aroma chemistry, sensory science and biotechnology.

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