International Flavors & Fragrances Inc.
) is slated to report its first-quarter 2014 results before the
market opens on May 6. In fourth-quarter 2013, the company
recorded a positive earnings surprise of 1.10% as well as
provided an encouraging outlook for 2014.
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Let us see how things are shaping up for first-quarter 2014
earnings release and whether the company will be able to post
another quarter of upbeat results.
Factors to Influence Q1 Results
International Flavors & Fragrances' stellar performance in
fourth-quarter 2013 coupled with a robust outlook for 2014 have
made investors optimistic of strong growth in the quarters ahead.
The company's share price, since Feb 13, has risen by 12%, while
year-to-date gain is nearly 31.3%.
For 2014, International Flavors & Fragrances anticipates
growth in revenues and earnings to remain strong. Acquired assets
of Aromor, in Jan 2014, are expected to add 1% to local currency
sales growth and be accretive to earnings in 2014. Also, the
company plans to invest $50 million in Indonesia for expansion of
its Flavors business in the region. Besides expansion plans, the
company's investments are aimed to strengthen its innovation
platforms. Rewarding shareholders also remains a priority for the
In the past 5 years, International Flavors & Fragrances'
earnings grew 10.5%, while it is expected to grow 6.5% over the
next 5 years.
However, weather-related adversities in the United States in
first-quarter 2014 impacted various industries across the
country. Also, foreign currency translations remain a prime cause
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
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here as you will see below.
International Flavors & Fragrances has an ESP of 0.00% for
first-quarter 2014. Both the Zacks Consensus Estimate and the
Most Accurate estimate stand at $1.25.
International Flavors & Fragrances carries a Zacks Rank #2
(Buy), which together with a 0.0% ESP makes surprise prediction
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
Kraton Performance Polymers Inc.
), with Earnings ESP of +10.71% and a Zacks Rank #2.
Kronos Worldwide, Inc.
), with Earnings ESP of +30.77% and a Zacks Rank #2.
), with Earnings ESP of +1.19% and a Zacks Rank #2.