Zacks Investment Research downgraded shares of International Flavors & Fragrances (NYSE:IFF) from a hold rating to a sell rating in a report published on Monday.
According to Zacks, “International Flavors & Fragrances’ adjusted earnings per share declined from the prior year-quarter despite a rise in revenues. The company lagged the Zacks Consensus Estimate on both counts. For 2019, International Flavors provided sales guidance of $5.2-$5.3 billion. Adjusted earnings per share are expected in the band of $4.90-$5.10 while adjusted earnings, excluding amortization, are anticipated in the range of $6.30-$6.50. Raw material cost inflation is likely to dent margins in 2019, particularly in the scent segment. The company might not be able to combat the raw material inflation with price increases given the aggressive price competition, which would negatively impact profits. Unfavorable foreign currency will also be a headwind for 2019 results. Higher debt to fund the Frutarom acquisition and the subsequent interest expense also remain concerns. The company has underperformed the industry over the past year.”
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A number of other equities research analysts also recently issued reports on IFF. Barclays reaffirmed a sell rating on shares of International Flavors & Fragrances in a research note on Monday. ValuEngine cut shares of International Flavors & Fragrances from a buy rating to a hold rating in a research report on Thursday, January 10th. Raymond James cut shares of International Flavors & Fragrances from a market perform rating to an underperform rating and set a $135.00 price objective on the stock. in a research report on Friday, November 16th. Finally, Citigroup initiated coverage on shares of International Flavors & Fragrances in a research report on Friday, November 16th. They set a neutral rating and a $152.00 price objective on the stock. Four analysts have rated the stock with a sell rating, five have issued a hold rating and two have assigned a buy rating to the company’s stock. International Flavors & Fragrances presently has a consensus rating of Hold and an average price target of $142.00.
International Flavors & Fragrances stock opened at $128.74 on Monday. The firm has a market cap of $13.86 billion, a P/E ratio of 20.50, a price-to-earnings-growth ratio of 2.23 and a beta of 0.83. The company has a current ratio of 2.61, a quick ratio of 1.65 and a debt-to-equity ratio of 0.75. International Flavors & Fragrances has a 52-week low of $122.11 and a 52-week high of $150.57.
International Flavors & Fragrances (NYSE:IFF) last released its quarterly earnings results on Wednesday, February 13th. The specialty chemicals company reported $1.22 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $1.29 by ($0.07). The business had revenue of $1.22 billion for the quarter, compared to analysts’ expectations of $1.24 billion. International Flavors & Fragrances had a net margin of 8.48% and a return on equity of 15.56%. International Flavors & Fragrances’s revenue for the quarter was up 42.6% compared to the same quarter last year. During the same period in the previous year, the company earned $1.40 EPS. On average, equities research analysts predict that International Flavors & Fragrances will post 6.39 earnings per share for the current fiscal year.
In other news, major shareholder Winder Investment Pte Ltd acquired 10,200 shares of the business’s stock in a transaction on Wednesday, December 12th. The shares were acquired at an average price of $136.82 per share, for a total transaction of $1,395,564.00. Following the completion of the transaction, the insider now directly owns 18,524,958 shares of the company’s stock, valued at approximately $2,534,584,753.56. The acquisition was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders have acquired 1,200,066 shares of company stock worth $158,182,402 in the last quarter. Company insiders own 0.50% of the company’s stock.
Hedge funds and other institutional investors have recently bought and sold shares of the company. JOYN Advisors Inc. grew its holdings in shares of International Flavors & Fragrances by 65.5% in the fourth quarter. JOYN Advisors Inc. now owns 187 shares of the specialty chemicals company’s stock worth $25,000 after purchasing an additional 74 shares during the last quarter. Massey Quick Simon & CO. LLC bought a new position in shares of International Flavors & Fragrances in the fourth quarter worth about $27,000. Fort L.P. grew its holdings in shares of International Flavors & Fragrances by 365.3% in the fourth quarter. Fort L.P. now owns 228 shares of the specialty chemicals company’s stock worth $31,000 after purchasing an additional 179 shares during the last quarter. Penserra Capital Management LLC bought a new position in shares of International Flavors & Fragrances in the fourth quarter worth about $37,000. Finally, Kaizen Advisory LLC grew its holdings in shares of International Flavors & Fragrances by 50.3% in the fourth quarter. Kaizen Advisory LLC now owns 272 shares of the specialty chemicals company’s stock worth $37,000 after purchasing an additional 91 shares during the last quarter. Hedge funds and other institutional investors own 79.94% of the company’s stock.
International Flavors & Fragrances Company Profile
International Flavors & Fragrances Inc, together with its subsidiaries, manufactures flavors and fragrances for use in various consumer products. It operates through two segments, Flavors and Fragrances. The Flavors segment offers flavor compounds primarily to the food and beverage industries for use in consumer products, such as prepared foods, beverages, dairy, food, and sweet products.
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