International Flavors & Fragrances Inc. IFF is scheduled to report fourth-quarter 2024 results on Feb. 18, after the closing bell.

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The Zacks Consensus Estimate for IFF’s revenues is pegged at $2.67 billion, indicating a 1.37% dip from the year-ago reported figure.

The consensus estimate for earnings is pegged at 78 cents per share. The consensus estimate for IFF’s earnings has moved down 2.5% in the past 60 days. The estimate indicates year-over-year growth of 8.3%.

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IFF’s Earnings Surprise History

International Flavors’ earnings beat the Zacks Consensus Estimates in two of the trailing four quarters and missed in two, the average surprise being a positive 10.9%.

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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 +3.33%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Zacks Rank: The company currently sports a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Have Shaped IFF’s Q4 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 Q4

Our model estimates the Nourish segment’s fourth-quarter sales to decline 2.1% year over year to $1.36 billion. The segment’s operating EBITDA is projected at $160 million, indicating a fall of 3% from the year-ago quarter’s actual. 

We expect the Scent segment’s sales to decrease 5.5% year over year to $546 million. The ongoing momentum in Consumer Fragrance, as well as improvement in Fragrance Ingredients and Fine Fragrance, is likely to have aided its performance. Our estimate for the segment’s quarterly operating EBITDA is $101 million, indicating a year-over-year decrease of 6.9%.

The projection for the Health &  Biosciences segment’s sales is $537 million, indicating a 1.7% increase from the year-ago quarter’s reported figure, reflecting the ongoing momentum in its businesses. We expect operating EBITDA to decrease 6.4% to $152 million.

The Pharma Solutions segment’s sales are projected to inch up 0.2% year over year to $203 million as volume growth will be somewhat offset by lower pricing. The segment's operating EBITDA is expected to fall 9% from the year-ago reported figure to $24 million. Volume growth and productivity gains are likely to have been offset by an unfavorable mix.

IFF Stock’s Price Performance

In the past year, International Flavors’ shares have gained 6.8% against the industry’s 15.7% decline.

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Other Stocks to Consider

Here are some other companies in the basic materials space, which, according to our model, have the right combination of elements to post an earnings beat this quarter.

CF Industries Holdings, Inc. CF, scheduled to release its fourth-quarter 2024 earnings on Feb. 18, has an Earnings ESP of +1.25% and a Zacks Rank #3 at present. 

The Zacks Consensus Estimate for CF’s fourth-quarter earnings is pegged at $1.49. It has a trailing four-quarter average surprise of 10.3%.

Avient Corporation AVNT, ready to release earnings numbers on Feb. 13, currently has an Earnings ESP of +0.11% and a Zacks Rank #3.

The Zacks Consensus Estimate for AVNT’s fourth-quarter 2024 earnings is pegged at 48 cents. It has a trailing four-quarter average surprise of 7.4%.

Kinross Gold Corporation KGC, scheduled to release its fourth-quarter 2024 on Feb. 12, has an Earnings ESP of +17.02% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for KGC’s fourth-quarter 2024 earnings is pegged at 23 cents per share. It has a trailing four-quarter average surprise of 32.5%.

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International Flavors & Fragrances Inc. (IFF) : Free Stock Analysis Report

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Avient Corporation (AVNT) : Free Stock Analysis Report

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