International Flavors Gears Up to Report Q4 Earnings: What to Expect?

International Flavors & Fragrances Inc. IFF is scheduled to report fourth-quarter 2024 results on Feb. 18, after the closing bell.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The Zacks Consensus Estimate for IFF’s revenues is pegged at $2.67 billion, indicating a 1.37% dip from the year-ago reported figure.The consensus estimate for earnings is pegged at 78 cents per share. The consensus estimate for IFF’s earnings has moved down 2.5% in the past 60 days. The estimate indicates year-over-year growth of 8.3%.  Image Source: Zacks Investment Research IFF’s Earnings Surprise HistoryInternational Flavors’ earnings beat the Zacks Consensus Estimates in two of the trailing four quarters and missed in two, the average surprise being a positive 10.9%.  Image Source: Zacks Investment Research What the Zacks Model Unveils for International FlavorsOur model predicts an earnings beat for International Flavors this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.Earnings ESP: IFF has an Earnings ESP of +3.33%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.Zacks Rank: The company currently sports a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.Factors Likely to Have Shaped IFF’s Q4 PerformanceThe company has been witnessing volume growth with broad-based contributions across each of its businesses. International Flavors’s results are likely to reflect the overall improvement in its sales performance. IFF’s ongoing efforts to improve productivity and reduce costs are likely to have benefited its margins.However, International Flavors continues to incur high raw material costs and additional costs related to labor, shipping and cleaning. Despite its pricing actions and focused cost reduction efforts, these factors are likely to have dented margins in the to-be-reported quarter. International Flavors’ manufacturing costs are expected to increase to support higher demand.Projections for International Flavors’ Segments in Q4Our model estimates the Nourish segment’s fourth-quarter sales to decline 2.1% year over year to $1.36 billion. The segment’s operating EBITDA is projected at $160 million, indicating a fall of 3% from the year-ago quarter’s actual. We expect the Scent segment’s sales to decrease 5.5% year over year to $546 million. The ongoing momentum in Consumer Fragrance, as well as improvement in Fragrance Ingredients and Fine Fragrance, is likely to have aided its performance. Our estimate for the segment’s quarterly operating EBITDA is $101 million, indicating a year-over-year decrease of 6.9%.The projection for the Health &  Biosciences segment’s sales is $537 million, indicating a 1.7% increase from the year-ago quarter’s reported figure, reflecting the ongoing momentum in its businesses. We expect operating EBITDA to decrease 6.4% to $152 million.The Pharma Solutions segment’s sales are projected to inch up 0.2% year over year to $203 million as volume growth will be somewhat offset by lower pricing. The segment's operating EBITDA is expected to fall 9% from the year-ago reported figure to $24 million. Volume growth and productivity gains are likely to have been offset by an unfavorable mix.IFF Stock’s Price PerformanceIn the past year, International Flavors’ shares have gained 6.8% against the industry’s 15.7% decline. Image Source: Zacks Investment Research Other Stocks to ConsiderHere are some other companies in the basic materials space, which, according to our model, have the right combination of elements to post an earnings beat this quarter.CF Industries Holdings, Inc. CF, scheduled to release its fourth-quarter 2024 earnings on Feb. 18, has an Earnings ESP of +1.25% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for CF’s fourth-quarter earnings is pegged at $1.49. It has a trailing four-quarter average surprise of 10.3%.Avient Corporation AVNT, ready to release earnings numbers on Feb. 13, currently has an Earnings ESP of +0.11% and a Zacks Rank #3.The Zacks Consensus Estimate for AVNT’s fourth-quarter 2024 earnings is pegged at 48 cents. It has a trailing four-quarter average surprise of 7.4%.Kinross Gold Corporation KGC, scheduled to release its fourth-quarter 2024 on Feb. 12, has an Earnings ESP of +17.02% and a Zacks Rank of 3 at present.The Zacks Consensus Estimate for KGC’s fourth-quarter 2024 earnings is pegged at 23 cents per share. It has a trailing four-quarter average surprise of 32.5%.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report International Flavors & Fragrances Inc. (IFF): Free Stock Analysis Report CF Industries Holdings, Inc. (CF): Free Stock Analysis Report Kinross Gold Corporation (KGC): Free Stock Analysis Report Avient Corporation (AVNT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks