International Flavors & Fragrances Inc.
) is scheduled to report its second-quarter 2014 results on Aug 5
before the market opens. The Zacks Consensus for the quarter is
pegged at $1.35.
The company reported better-than-expected results in the first
quarter, with a positive earnings surprise of 5.60%. Let us see how
things are shaping up for this quarter and whether International
Flavors & Fragrances will be able to post another quarter of
Factors to Influence Q2 Results
Population growth and wealth creation, especially in the emerging
nations, are strengthening the demand for consumer products
including flavors and fragrances.
International Flavors & Fragrances maintains an exhaustive
research and development wing that focuses on developing new and
innovative compounds. The company's diversified product mix will
enable it to capitalize on the growing worldwide demand for flavors
and fragrances. Further, the acquisition of Aromor Flavors and
Fragrances in Jan 2014 will boost its core sales and earnings
However, the challenge of operating in a highly competitive
environment persists for International Flavors & Fragrances.
Also, the company faces risks arising from currency translation and
disruption in supply of important raw materials.
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 Earnings ESP of 0.00%
for second-quarter 2014. This is because both the Zacks Consensus
Estimate and the Most Accurate estimate stand at $1.35.
International Flavors & Fragrances carries a Zacks Rank #3
(Hold), which when combined with a 0.00% ESP makes surprise
We caution against stocks with Zacks Ranks #4 and #5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing a negative estimate revision momentum.
Other Stocks to Consider
Here are some companies you may want to consider as our model shows
they have the right combination of elements to post an earnings
beat this quarter:
Green Plains Inc. (
), with an Earnings ESP of +7.32% and a Zacks Rank #1 (Strong
The Sherwin-Williams Company (
), with an Earnings ESP of +1.27% and a Zacks Rank #2 (Buy).
Celanese Corporation (
), with an Earnings ESP of +0.70% and a Zacks Rank #2.
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