How IFF Stock Has Performed since 4Q17 Earnings



International Flavors and Fragrances to report 1Q18 earnings

International Flavors and Fragrances (IFF) is set to announce its 1Q18 earnings on May 7 after market hours. It plans to hold a conference call 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 4Q17 earnings. We’ll also look at analysts’ revenue and EPS (earnings per share) estimates and the latest recommendations for the stock.

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Since IFF declared its 4Q17 earnings on February 14, 2018, the stock price has fallen 3.3%. Peers Sensient Technologies (SXT), Estée Lauder (EL), and Clorox (CLX) also fell 7.3%, 5.1%, and 9.9%, respectively. IFF has significantly outperformed peers. Although IFF posted a strong performance in 4Q17, market volatility has risen due to fears of a tariff war between China and the US.

Also, the increasing input costs and other operating costs have worried investors. However, analysts expect that IFF can continue its strong earnings in 1Q18 as well. Also, the company plans to continue share buybacks under its $300 million share repurchase program and expects to add value to the remaining shareholders.

Moving averages

The decline in IFF stock price has resulted in IFF trading 3.2% below its 100-day moving average price of $144.75, which indicates the prevailing weakness in the stock. However, IFF’s RSI (or relative strength index) of 51 indicates that the stock is neither oversold nor overbought.

Investors can get indirect exposure to IFF by investing in the Vanguard Materials ETF (VAW), which has invested 1.3% of its portfolio in IFF as of May 2.


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