Earnings Beat: Inter Parfums, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Last week, you might have seen that Inter Parfums, Inc. (NASDAQ:IPAR) released its second-quarter result to the market. The early response was not positive, with shares down 2.3% to US$134 in the past week. The result was positive overall - although revenues of US$342m were in line with what the analysts predicted, Inter Parfums surprised by delivering a statutory profit of US$1.14 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Inter Parfums

After the latest results, the four analysts covering Inter Parfums are now predicting revenues of US$1.45b in 2024. If met, this would reflect a modest 6.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 17% to US$5.15. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.45b and earnings per share (EPS) of US$5.15 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$143. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Inter Parfums, with the most bullish analyst valuing it at US$172 and the most bearish at US$54.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Inter Parfums' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.5% per year. Even after the forecast slowdown in growth, it seems obvious that Inter Parfums is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$143, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Inter Parfums going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Inter Parfums has 1 warning sign we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.