Inter Parfums, Inc. IPAR raised its 2022 guidance on better-than-anticipated fourth-quarter 2022 sales. Along with this, the company also raised its sales and earnings guidance for 2023.
Impressively, IPAR’s shares were up more than 2% during yesterday’s aftermarket hours. This Zacks Rank #1 (Strong Buy) company’s stock has gained 25.8% in the past three months, compared with the industry’s 7.6% growth.
Let’s delve deeper.
Management now expects 2022 net sales of $1.08 billion, up from the previous guidance of $1.025 billion. Considering greater sales and concurrent operating leverage, the company envisions 2022 earnings per share (EPS) of nearly $3.60, higher than the earlier guidance of $3.40. Incidentally, the guidance indicates a 23% rise in net sales and a 31% increase in EPS when compared with the 2021 level.
Inter Parfums witnessed impressive performance across the U.S.- and Europe-based operations in the fourth quarter of 2022. Incidentally, indicators and order levels are likely to drive solid sales growth during 2023. Management anticipates net sales of $1.15 billion, up from $1.11 billion projected earlier. Inter Parfums now expects EPS of $3.75 for 2023, indicating growth from $3.70 per share expected earlier.
Image Source: Zacks Investment Research
Inter Parfums is on track to expand its business through new licenses or acquisitions. In December 2022, its majority-owned Paris-based subsidiary, Interparfums SA, signed a license agreement with Lacoste — a well-known fashion sports brand. Both parties entered into a worldwide exclusive 15-year fragrance license agreement, effective Jan 1, 2024. The company is optimistic about the partnership with well-established fragrance brands like Donna Karan and DKNY.
In December 2021, Inter Parfums, through its subsidiary Interparfums Italia, signed a 10-year exclusive global licensing agreement with Emanuel Ungaro. In October 2021, Inter Parfums finalized the agreement with Salvatore Ferragamo S.p.A. Per the agreement, Inter Parfums holds the exclusive worldwide license for the production and distribution of Salvatore Ferragamo brand perfumes.
Inter Parfums is well-positioned to cater to elevated demand in the fragrance space. During 2022, the company introduced several scents, namely Montblanc Legend Red, Coach Wild Rose and Coach Dreams Sunset, among others. The company has a number of products in the pipeline for 2023 and beyond.
3 Other Solid Consumer Staples Picks
Some other top-ranked stocks are e.l.f. Beauty ELF, Conagra Brands CAG and Campbell Soup CPB.
e.l.f. Beauty, operating as a cosmetic and skin care products provider, currently sports a Zacks Rank of 1. ELF has a trailing four-quarter earnings surprise of 92.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for e.l.f. Beauty’s current financial year’s sales and earnings suggests growth of 24.6% and 33.3%, respectively, from the prior-year reported numbers.
Conagra Brands, operating as a consumer packaged goods food company, currently carries a Zacks Rank of 2 (Buy). CAG has a trailing four-quarter earnings surprise of 1.8%, on average.
The Zacks Consensus Estimate for Conagra Brands’ current financial year sales and earnings suggests growth of 5.8% and 4.2%, respectively, from the corresponding year-ago reported figures.
Campbell Soup, which manufactures and markets food and beverage products, currently carries a Zacks Rank of 2. CPB has a trailing four-quarter earnings surprise of 8.7%, on average.
The Zacks Consensus Estimate for Campbell Soup’s current financial-year sales and earnings suggests growth of 8.2% and 4.9%, respectively, from the corresponding year-ago reported figures.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.