Shares of cosmetic and health ingredients provider International Flavors & Fragrances (NYSE:IFF) are tanking in the pre-market session today after its second-quarter numbers fell short of expectations.
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Revenue dropped 11.4% year-over-year to $2.93 billion, missing estimates by $147.1 million. Additionally, EPS at $0.86 too missed the cut by $0.24. During the quarter, gains in Scent and Pharma Solutions were largely offset by weakness in the Nourish & Health and Biosciences segments. Additionally, despite higher pricing, lower volumes in its functional Ingredients vertical contributed to an overall double-digit decrease in volumes as compared to the year-ago period.
Amid the current macro environment and with an aim to maximize value for investors, IFF has divested its Microbial Control, Savory Solutions, and Flavor Specialty Ingredients businesses and has also initiated the sale process for its Cosmetic Ingredients business.
Looking ahead, for the full-year 2023, IFF expects sales to hover between $11.3 billion and $11.6 billion as compared to an earlier outlook of $12.3 billion. Adjusted EBITDA for the year is seen landing between $1.85 billion and $2 billion versus prior expectations of $2.34 billion.
Overall, the Street has a $99 consensus price target on IFF alongside a Moderate Buy consensus rating. Today’s mega 22% price drop comes on top of a 37% decline in IFF shares over the past year.
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