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International Flavors & Fragrances Inc. IFF is scheduled to report first-quarter 2025 results on May 6, after the closing bell.
The Zacks Consensus Estimate for IFF’s sales is pegged at $2.83 billion, indicating a 2.2% dip from the year-ago reported figure.
The consensus estimate for earnings is pegged at $1.12 per share. The consensus estimate for IFF’s earnings has moved up 2.7% in the past 60 days. The estimate indicates a year-over-year dip of 0.9%. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)
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IFF’s Earnings Surprise History
International Flavors’ earnings beat the Zacks Consensus Estimates in three of the trailing four quarters and missed in one, the average surprise being 17.9%.
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What the Zacks Model Unveils for International Flavors
Our model predicts an earnings beat for International Flavors this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.
Earnings ESP: IFF has an Earnings ESP of +1.05%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently has a Zacks Rank of 3.
Factors Likely to Have Shaped IFF’s Q1 Performance
The company has been witnessing volume growth, with broad-based contributions across each of its businesses. International Flavors’s results are likely to reflect the overall improvement in its sales performance. IFF’s ongoing efforts to improve productivity and reduce costs are likely to have benefited its margins.
However, International Flavors continues to incur high raw material costs and additional costs related to labor, shipping and cleaning. Despite its pricing actions and focused cost reduction efforts, these factors are likely to have dented margins in the to-be-reported quarter. International Flavors’ manufacturing costs are expected to increase to support higher demand.
Projections for International Flavors’ Segments in Q1
Our model estimates the Nourish segment’s first-quarter sales to decline 3.6% year over year to $1.44 billion. The segment’s operating EBITDA is projected at $211 million, indicating a fall of 2.1% from the year-ago quarter’s actual.
We expect the Scent segment’s sales to decrease 6% year over year to $606 million. The ongoing momentum in Consumer Fragrance, as well as improvement in Fragrance Ingredients and Fine Fragrance, is likely to have aided its performance. However, the gains will be partially negated by higher costs. Our estimate for the segment’s quarterly operating EBITDA is $132 million, indicating a year-over-year decrease of 15.9%.
The projection for the Health & Biosciences segment’s sales is $532 million, indicating a 0.2% increase from the year-ago quarter’s reported figure, reflecting the ongoing momentum in its businesses. We expect operating EBITDA to increase 1.7% to $162 million.