International Flavors & Fragranc Down 0.35% To $72.09 After Earnings Beat

International Flavors & Fragrances Inc (IFF) beat out earnings estimates for Q3 2023 this afternoon.

Analyst expectations for International Flavors & Fragranc earnings per share (EPS) were at $0.75, with the company surpassing those estimates with a reported EPS of $0.89, leading to a positive surprise of $0.14 per share (19%). International Flavors & Fragranc's earnings were down 35% year-over-year as the firm reported an EPS of $1.36 in its year-ago quarter. The negative annual growth shows the Basic Materials company isn't performing well amid current economic conditions.

Consensus estimates for International Flavors & Fragranc revenue averaged out to $2.8 billion, with the business managing to beat those expectations with reported third-quarter revenue of $2.8 billion. The $50 million (2%) positive revenue surprise led to negative 8% growth year-over-year as the firm reported revenue of $3.1 billion in its year-ago quarter. The lower earnings growth compared to revenue points to International Flavors & Fragranc not being able to improve its profit margin.

The stock is down 0.35% to $72.09 after the report.

International Flavors & Fragranc's profit margins took a hit as earnings fell at a faster pace than revenues.

Wall Street Analysts had an average rating of Buy on the stock prior to the report.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 20. Meanwhile, the average Wall Street analyst rated the stock a Buy.

International Flavors & Fragrances is the largest specialty ingredients producer globally. The company sells ingredients for the food, beverage, health, household goods, personal care, and pharmaceutical industries. The company makes proprietary formulations, partnering with customers to deliver custom solutions. The nourish segment, which generates roughly half of revenue, is a leading flavor producer and also sell texturants, plant-based proteins, and other ingredients. The health and biosciences business, which generates around one fourth of revenue, is a global leader in probiotics and enzymes. IFF is also one of the leading fragrance producers in the world. The firm also sells pharmaceutical ingredients such as excipients and time-release polymers.