International Flavors and Fragrances to report 4Q17 earnings
International Flavors and Fragrances is set to announce its 4Q17 earnings on February 14, 2018, after market hours. It will hold a conference call on the next day at 10:00 AM EST to discuss results with investors. In this series, we’ll look at IFF’s stock performance since its 3Q17 earnings. We’ll also look at analysts’ revenue and EPS (earnings per share) estimates and the latest recommendations for the stock.
Since IFF declared its 3Q17 earnings on November 7, 2018, the stock price has fallen 8.0%. Peer Sensient Technologies (SXT) also fell 7.4% during the same period. The decline in IFF’s stock price was primarily due to the big fall in the US stock market.
After 3Q17 earnings, IFF rose 4.6% before sliding. However, IFF’s positive business developments could push the stock price up again. IFF is expanding its production capacity to meet growing demand. The company has started building the biggest plant in greater Asia, which is expected to be completed by December 2019. IFF also commissioned a plant in China during the fourth quarter. Plus, it’s strengthening its supply chain. All these factors indicate that IFF is looking to grow rapidly and is ready to explore new opportunities.
Further, IFF announced a $300 million share repurchases program, which is authorized until the end of 2022. This will add more value to the remaining shareholders.
The global sell-off has pushed IFF stock price 8% below its 100-day moving average price of $149.92. However, IFF’s RSI (or relative strength index) of 24 indicates that the stock has moved into an oversold position temporarily, but it could bounce back from this position.
Investors can get indirect exposure to IFF by investing in the First Trust Materials AlphaDEX Fund (FXZ), which invests 1.3% of its portfolio in IFF. The fund also provides exposure to Eastman Chemical (EMN) and Cabot (CBT), which have weights of 3.6% and 3.5%, respectively, as of February 8, 2018.