International Flavors & Fragrances Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

International Flavors & Fragrances Inc. (NYSE:IFF) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 2.3% to hit US$2.8b. International Flavors & Fragrances also reported a statutory profit of US$2.38, which was an impressive 310% above what the analysts had forecast. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following the recent earnings report, the consensus from 16 analysts covering International Flavors & Fragrances is for revenues of US$10.8b in 2025. This implies a discernible 4.3% decline in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 38% to US$0.96. Before this earnings announcement, the analysts had been modelling revenues of US$10.8b and losses of US$0.47 per share in 2025. So it's pretty clear the analysts have mixed opinions on International Flavors & Fragrances even after this update; although they reconfirmed their revenue numbers, it came at the cost of a regrettable increase in per-share losses.

Check out our latest analysis for International Flavors & Fragrances

The consensus price target held steady at US$85.94, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. 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. Currently, the most bullish analyst values International Flavors & Fragrances at US$105 per share, while the most bearish prices it at US$69.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 8.4% by the end of 2025. This indicates a significant reduction from annual growth of 11% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.5% annually for the foreseeable future. It's pretty clear that International Flavors & Fragrances' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that International Flavors & Fragrances' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$85.94, 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. We have estimates - from multiple International Flavors & Fragrances analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for International Flavors & Fragrances that you need to take into consideration.

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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.