Earnings Update: Interparfums, Inc. (NASDAQ:IPAR) Just Reported Its Annual Results And Analysts Are Updating Their Forecasts

Investors in Interparfums, Inc. (NASDAQ:IPAR) had a good week, as its shares rose 4.3% to close at US$140 following the release of its yearly results. It was a credible result overall, with revenues of US$1.5b and statutory earnings per share of US$5.12 both in line with analyst estimates, showing that Interparfums is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Interparfums after the latest results.

See our latest analysis for Interparfums

Taking into account the latest results, the most recent consensus for Interparfums from four analysts is for revenues of US$1.51b in 2025. If met, it would imply a reasonable 3.9% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 4.3% to US$5.35. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.51b and earnings per share (EPS) of US$5.33 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of US$151, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Interparfums, 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Interparfums' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.9% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past five years. Compare this to the 104 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.6% per year. Factoring in the forecast slowdown in growth, it looks like Interparfums is forecast to grow at about the same rate as 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$151, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Interparfums. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Interparfums analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Interparfums , and understanding it should be part of your investment process.

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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.