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Inter Parfums Raises 2021 Guidance for the Fourth Time

Despite the ongoing global supply chain disruptions, prestige perfumes company Inter Parfums, Inc. (IPAR) has raised the guidance for 2021 again. The increase is driven by sustained customer demand in Europe.

Based out of New York, the company is engaged in the production, sale and distribution of a variety of fragrances and related products.

Its shares lost 0.4% on Thursday to close at $95.07. (See Insiders’ Hot Stocks on TipRanks)

Updated Guidance

Inter Parfums now expects 2021 net sales to total $840 million, compared to $810 million expected previously and the Street’s estimate of $817.36 million.

Earnings per share (EPS) is anticipated to come in at $2.45, higher than the earlier expectation and the consensus estimate of $2.35.

This is the fourth time the company has increased its guidance for 2021 since initially issuing the outlook on December 1, 2020.

CEO Comments

The Chairman and CEO of Inter Parfums, Jean Madar, said, “While our growth has been stronger than expected during the last few months of this year, in light of the current lack of visibility, we have decided for the time being to maintain our 2022 guidance with net sales in the range of $925 and $950 million, resulting in net income per diluted share of between $2.80 and $2.85.”

Analysts expect the company to report revenue of $934.47 million and EPS of $2.84 in 2022.

Wall Street’s Take

Last month, BWS Financial analyst Hamed Khorsand reiterated a Buy rating on the stock and raised the price target to $125 from $100 (31.5% upside potential).

The analyst said, “The additions of new brand licenses for 2022, as well as success from its existing portfolio, should yield another year of double-digit percentage sales growth and set the company up to beat on sales and earnings expectations for 2022.”

Overall, the stock has a Moderate Buy consensus rating based on 2 Buys and 1 Hold. The average Inter Parfums price target of $119.33 implies 25.5% upside potential. Shares have gained 67.7% over the past year.

Smart Score

According to TipRanks’ Smart Score rating system, Inter Parfums scores an 8 out of 10, suggesting that the stock is likely to outperform market averages.

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