International Flavors & Fragrances Inc. (IFF) is scheduled to report fourth-quarter 2014 results on Feb 12 before the market opens. The Zacks Consensus Estimate for the quarter is pegged at $1.31.
The company’s earnings track record is quite impressive, with positive earnings surprises in three out of four trailing quarters. Last quarter, the company’s earnings of $1.32 per share came in line with the Zacks Consensus Estimate. Average earnings surprise in the last four quarters is positive 2.05%. Let us see how things are shaping up for this quarter.
Factors to Influence Q4 Results
International Flavors & Fragrances stands well positioned to benefit from the growing demand for flavors and fragrances, especially in the emerging countries. The company’s research and development wing is constantly endeavoring to develop new and innovative compounds to suitably meet the rising demand. In the fourth quarter, the company opened new flavors facilities in Indonesia and Chile.
However, International Flavors & Fragrances cannot completely rule out the presence of headwinds. Adverse currency movements are likely to impact fourth-quarter results; while geopolitical issues in some foreign countries, served by the company, might negatively affect results.
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 Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here as you will see below.
Zacks ESP: International Flavors & Fragrances has an Earnings ESP of 0.00%, with both the Most Accurate estimate and the Zacks Consensus Estimate pegged at $1.03.
Zacks Rank: International Flavors & Fragrances currently carries a Zacks Rank #3 (Hold), which, when combined with a 0.00% ESP, makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revision momentum.
Stocks to Consider
Here are some companies that you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Daqo New Energy Corp. (DQ), with an Earnings ESP of +41.18% and a Zacks Rank #2 (Buy).
Minerals Technologies Inc. (MTX), with an Earnings ESP of +2.02% and a Zacks Rank #2.
Sigma-Aldrich Corporation (SIAL), with an Earnings ESP of +0.92% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment