Core Insights - International Flavors (IFF) reported a revenue of $2.59 billion for the quarter ended December 2025, reflecting a year-over-year decline of 6.6% and an EPS of $0.80 compared to $0.97 a year ago, with a revenue surprise of +3.09% over the Zacks Consensus Estimate of $2.51 billion and an EPS surprise of -5.37% [1] Financial Performance - Net Sales in Health & Biosciences reached $589 million, exceeding the average estimate of $554.97 million by four analysts, representing a year-over-year increase of +6.5% [4] - Net Sales in Scent amounted to $610 million, surpassing the average estimate of $589.73 million, with a year-over-year change of +5.4% [4] - Net Sales in Taste were reported at $588 million, slightly above the average estimate of $578 million [4] - Net Sales in Food Ingredients totaled $802 million, compared to the average estimate of $797.21 million [4] Adjusted Operating EBITDA - Adjusted Operating EBITDA for Health & Biosciences was $155 million, exceeding the average estimate of $132.53 million [4] - Adjusted Operating EBITDA for Food Ingredients was $82 million, below the average estimate of $96.53 million [4] - Adjusted Operating EBITDA for Taste was $94 million, compared to the average estimate of $99.67 million [4] - Adjusted Operating EBITDA for Scent was $106 million, below the average estimate of $111.73 million [4] Stock Performance - Shares of International Flavors have returned +10.3% over the past month, contrasting with the Zacks S&P 500 composite's -0.3% change, and the stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Core Insights - International Flavors (IFF) reported quarterly earnings of $0.8 per share, missing the Zacks Consensus Estimate of $0.85 per share, and down from $0.97 per share a year ago [1] - The company posted revenues of $2.59 billion for the quarter, surpassing the Zacks Consensus Estimate by 3.09%, but down from $2.77 billion year-over-year [3] Earnings Performance - The earnings surprise for the quarter was -5.37%, while the previous quarter saw a positive surprise of +2.94% [2] - Over the last four quarters, IFF has surpassed consensus EPS estimates three times [2] Stock Performance - IFF shares have increased by approximately 13.9% since the beginning of the year, compared to a 1.4% gain in the S&P 500 [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.20 on revenues of $2.72 billion, and for the current fiscal year, it is $4.51 on revenues of $10.72 billion [8] - The estimate revisions trend for IFF was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [7] Industry Context - The Chemical - Specialty industry, to which IFF belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, suggesting potential challenges ahead [9]

Financial Performance - Reported net sales for the full year 2025 were $10.89 billion, a decrease of 5% compared to the prior year, while currency neutral sales increased by 2%[4] - The loss before taxes for the full year was $412 million, and the reported EPS was $(1.46), while adjusted EPS excluding amortization was $4.20[2][7] - For the fourth quarter, reported net sales were $2.59 billion, a decrease of 7% year-over-year, but currency neutral sales increased by 1%[12] - Net sales for Q4 2025 were $2,589 million, a decrease of 7% compared to Q4 2024's $2,771 million, and full-year sales were $10,890 million, down 5% from $11,484 million in 2024[39] - The company reported a net loss of $412 million for 2025, compared to a net income of $308 million in 2024, indicating a significant shift in financial performance[73] EBITDA and Profitability - Adjusted operating EBITDA for the full year was $2.086 billion, with a currency neutral increase of 7% driven by volume growth and productivity gains[4] - The fourth quarter adjusted operating EBITDA was $437 million, with a comparable currency neutral increase of 7% primarily due to productivity gains[12] - Adjusted Operating EBITDA for the twelve months ended December 31, 2025, was $2,086 million, compared to $2,200 million in the previous year, reflecting a decrease of 5.2%[49] - The consolidated Adjusted Operating EBITDA margin for the twelve months ended December 31, 2025, was 19.2%, down from 19.5% in the previous year[49] - Segment Adjusted Operating EBITDA margin for the consolidated results improved to 19.2% in 2025 from 18.7% in 2024[88] Cash Flow and Debt - Cash flow from operations for the full year was $850 million, with free cash flow totaling $256 million[7] - Total debt to trailing twelve months net income at the end of Q4 was 16.2x, while net debt to credit-adjusted EBITDA was 2.6x[7] - The company reported a net cash provided by operating activities of $850 million for 2025, down from $1,070 million in 2024[43] - The company’s long-term debt decreased to $4,740 million in 2025 from $7,564 million in 2024, reflecting a reduction in leverage[41] - Total debt as of December 31, 2025, was $6,026 million, with net debt calculated at $5,436 million after accounting for cash and cash equivalents of $590 million[83] Research and Development - Research and development expenses increased by 2% in Q4 2025 to $174 million, and for the full year, they rose by 3% to $694 million compared to $671 million in 2024[39] - Research and development expenses for the three months ended December 31, 2025, were $175 million, compared to $168 million in the same period of 2024, indicating an increase of 4.2%[46][47] - Research and development expenses totaled $1.071 billion, reflecting a focus on innovation across segments[50] Strategic Initiatives and Divestitures - The company is in the process of divesting its Food Ingredients segment to sharpen strategic focus and improve financial flexibility[3] - The company incurred restructuring and other charges of $70 million for the full year 2025, a significant increase of 141% compared to $29 million in 2024[39] - Business divestiture costs were approximately $35 million in Q4 2025, down from $56 million in Q4 2024, indicating improved cost management[62] - The company is undergoing a phased restructuring initiative aimed at optimizing its legal entity framework, which includes costs related to entity realignment[51] - Business divestiture costs for 2025 were approximately $125 million, while costs for 2024 were around $220 million, indicating a reduction in divestiture-related expenses[76] Segment Performance - The Taste segment reported sales of $588 million in Q4 2025, a 2.6% increase from $573 million in Q4 2024, with an operating EBITDA margin of 16.0%[88] - Health & Biosciences segment sales increased to $589 million in Q4 2025, compared to $550 million in Q4 2024, with an operating EBITDA margin of 26.3%[88] - The Scent segment achieved sales of $610 million in Q4 2025, up from $578 million in Q4 2024, with an operating EBITDA margin of 17.4%[88] - The Pharma Solutions segment reported a significant decline in sales, down 65% year-over-year, reflecting the impact of divestitures[96] Future Outlook - The company expects full year 2026 sales to be in the range of $10.5 billion to $10.8 billion, with adjusted operating EBITDA projected between $2.05 billion and $2.15 billion[14] - Comparable currency neutral sales growth for 2026 is expected to be between 1% to 4%, with adjusted operating EBITDA growth anticipated to be 3% to 8% year-over-year[15] - Future outlook includes continued investment in strategic initiatives and productivity programs to enhance operational efficiency[51] - The company anticipates continued growth in the Taste and Health & Biosciences segments, driven by new product innovations and market expansion strategies[88]

Core Insights - International Flavors & Fragrances Inc. (IFF) is set to report its fourth-quarter 2025 results on February 11, with sales expected to be $2.51 billion, reflecting a 9.7% decline year-over-year [1][6] - The earnings estimate is pegged at 85 cents per share, indicating a year-over-year decrease of 12.4% [1][6] - IFF has a history of beating earnings estimates, achieving an average surprise of 9.5% over the past four quarters [3][6] Sales and Earnings Estimates - The Zacks Consensus Estimate for IFF's sales is $2.51 billion, down 9.7% from the previous year [1][6] - Earnings per share (EPS) is estimated at 85 cents, unchanged over the past 60 days [1] - The company has an Earnings ESP of +3.50%, suggesting a potential earnings beat [4] Segment Performance Projections - The Taste segment's sales are projected to decline by 0.8% year-over-year to $572 million, with adjusted operating EBITDA expected to grow by 29.3% to $113 million [10] - The Food Ingredients segment is anticipated to see a 2.7% decrease in sales to $797 million, with adjusted operating EBITDA declining by 2.7% to $98 million [10] - The Scent segment's sales are expected to decrease by 2% to $567 million, with operating EBITDA projected to rise by 1% to $107 million [11] - The Health & Biosciences segment is projected to have sales of $542 million, reflecting a 1.5% decrease, and operating EBITDA is expected to decline by 4% to $131 million [12] Cost and Margin Considerations - IFF has experienced volume growth and productivity gains, but high raw material costs and additional expenses related to labor, shipping, and cleaning are likely to have pressured margins [6][8] - Despite pricing actions and cost-reduction efforts, these factors are expected to negatively impact margins in the upcoming quarter [8] Stock Performance - Over the past year, IFF shares have decreased by 9.1%, contrasting with the industry's growth of 1.7% [13]

Core Viewpoint - Analysts project that International Flavors (IFF) will report quarterly earnings of $0.85 per share, reflecting a year-over-year decline of 12.4%, with revenues expected to reach $2.51 billion, down 9.4% from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate for the quarter has been revised upward by 1.7% over the past 30 days, indicating a collective reassessment by analysts [2]. - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3]. Key Metrics Projections - Analysts estimate 'Net Sales - Health & Biosciences' at $554.97 million, representing a year-over-year change of +0.4% [5]. - The consensus for 'Net Sales - Scent' is projected to be $589.73 million, indicating a +1.9% change from the prior-year quarter [5]. - 'Adjusted Operating EBITDA - Scent' is expected to be $111.73 million, an increase from the year-ago figure of $97.00 million [5]. - For 'Adjusted Operating EBITDA - Health & Biosciences', analysts project a figure of $132.53 million, down from $157.00 million reported in the same quarter last year [6]. Market Performance - IFF shares have increased by +7.1% over the past month, contrasting with the Zacks S&P 500 composite's decline of -1.5% [6]. - IFF holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [6].

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Core Viewpoint - Argus has raised the price target for IFF to $80 from $70 while maintaining a Buy rating, indicating confidence in the company's future performance [1] Group 1: Company Performance - The firm has a favorable view of IFF's innovative products and global reach, highlighting the broad-based product applications across different markets [1] - Despite challenges such as geopolitical developments and high raw material costs flattening the company's growth trajectory, Argus anticipates a turnaround in earnings over the next few quarters [1]

Core Viewpoint - International Flavors & Fragrances (NYSE:IFF) is considered a strong investment opportunity by hedge funds, with analysts maintaining bullish ratings and raising target prices, indicating significant upside potential for investors [1][3]. Analyst Ratings and Price Targets - Lauren Lieberman from Barclays assigned a Buy rating on January 16, raising the target price from $75 to $78, suggesting an upside potential of over 10% [1]. - Bank of America Securities analyst Salvator Tiano maintained a Buy rating and revised the price target from $84 to $88, indicating an upside of over 24% for investors [3]. Market Context and Risks - The recent interest in IFF is attributed to a "flight to safety" amid ongoing structural challenges in the broader sector [2]. - Potential risks related to currency and oil markets could adversely affect the sector moving forward [2]. Company Overview - International Flavors & Fragrances is a manufacturer and supplier of ingredients for various sectors including food, beverages, pharma, and beauty, operating through four segments: Health & Biosciences, Scent, Nourish, and Pharma Solutions [4]. - The company employs a B2B model and invests significantly in R&D, innovation, and supply chain efficiencies [4].

Core Viewpoint - International Flavors & Fragrances Inc. (IFF) is facing challenges with a projected decline in earnings per share (EPS) for fiscal Q4 2025, despite having exceeded earnings expectations in the past four quarters [2][6]. Financial Performance - IFF is expected to report an EPS of $0.84 for fiscal Q4 2025, a 13.4% decline from $0.97 in the same quarter last year [2]. - For fiscal 2025, analysts forecast an EPS of $4.28, slightly down from $4.31 in fiscal 2024, but anticipate a growth of 6.1% year-over-year to $4.54 in fiscal 2026 [3]. Stock Performance - Over the past 52 weeks, IFF's shares have decreased by 15.9%, underperforming the S&P 500 Index's return of 16.7% and the State Street Materials Select Sector SPDR ETF's gains of 12.5% [4]. - The stock's decline is attributed to concerns over slow turnaround progress and operational challenges, including lower demand and high raw material costs [5]. Revenue Insights - In Q3 2025, IFF reported revenue of approximately $2.7 billion, reflecting an 8% decrease from the prior-year quarter [6]. Analyst Sentiment - The consensus view among analysts is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 20 analysts, 12 recommend a "Strong Buy," 2 suggest a "Moderate Buy," and 6 advise a "Hold" [7]. - The average analyst price target for IFF is $81.02, indicating an upside potential of 14.4% [7].

Core Viewpoint - The focus is on identifying undervalued stocks with a strong potential for growth while managing risks effectively [1] Group 1 - The investment strategy emphasizes the importance of understanding the assets owned to limit risks and maximize potential returns [1] - Simplicity in investment ideas is highlighted as a key factor for success, with a preference for contrarian approaches [1]