After posting decent third quarter 2012 financial results, New
York-based manufacturer of fragrance and flavor products,
International Flavors & Fragrances Inc.
) declared a new share buyback program and payment of a quarterly
The company's Board of Directors approved a $250 million common
share repurchase program which is expected to commence in the
first quarter of 2013. The program will be carried out in the
open market or through private placement and will likely reduce
the company's shares outstanding by 4 million shares, or 5%.
In addition, the company also received approval for a quarterly
dividend payment of 34 cents per share on December 28, to
shareholders of record on December 21.
Dividend payments and share buybacks have been the company's
preferred way of rewarding its shareholders over time, having
returned $1.9 billion over the last 10 years. Also, for nine
months ended September 30, 2012, the company generated $143
million in cash from operating activities and paid dividends
amounting to $75 million. Quarter ending the company had cash and
cash equivalents of $97 million.
A strong balance sheet, shareholders' rewards, International
Flavors' steady expansion through new business wins, substantial
geographical diversifications, its wide product lines, continuous
accomplishments in research and intense consumer insight are the
attractive features of the company.
The Zacks Consensus Estimate for the fourth quarter is 84
cents, representing a year-over-year growth of 13.9%. Estimates
for years 2012 and 2013 are $4.01 and $4.36, reflecting annual
growth of 7.3% and 8.7%, respectively.
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The company currently bears a Zacks Rank of #2, translating into
a short-term Buy rating. It competes with other players including
), both carrying Zacks #3 Rank (Hold).