Inter Parfums, Inc. IPAR is likely to see a bottom-line decline when it reports first-quarter 2024 earnings on May 7. The consensus mark for quarterly earnings has declined by 4.9% in the past 30 days to $1.56 per share. This indicates a decrease of 7.1% from the year-ago quarter’s reported figure. However, IPAR has a trailing four-quarter earnings surprise of 16.4%, on average.
Factors to Note
Inter Parfums has been battling elevated SG&A costs for a while. The company has been undertaking heightened investments in advertising and promotion to support its brand. For 2024, the company remains dedicated to crafting compelling omnichannel advertising and promotional initiatives aimed at re-engaging loyal brand followers and captivating influential fragrance enthusiasts with its latest additions to the fragrance portfolio. Although such investments are likely to contribute to growth, they might have put pressure on profits in the quarter under review.
Additionally, management’s guidance for 2024 includes expectations of uncertainty associated with the political environment in the Middle East and Eastern Europe, which also raises concerns for the impending quarter. That said, the company has been benefiting from the strength of its brands and favorable fragrance market trends. Inter Parfums’ focus on bolstering brands through innovation, licensing deals and product launches has been working well.
Inter Parfums, Inc. Price, Consensus and EPS Surprise
Inter Parfums, Inc. price-consensus-eps-surprise-chart | Inter Parfums, Inc. Quote
Q1 Sales Picture
Inter Parfums recently came out with decent sales numbers for the first quarter of 2024, demonstrating its resilience and strength in the fragrance market. This producer and distributor of a wide array of prestige fragrance and fragrance-related products reported a 4% year-over-year increase in net sales for the quarter, reaching $324 million, largely attributed to the continued momentum in the fragrance market and the successful initial shipments of Lacoste and Cavalli fragrances.
Sales in the United States surged to $96 million, marking remarkable 18% growth compared to the previous year. This growth was propelled by the exceptional performance of Donna Karan/DKNY and GUESS fragrances. The successful launch of Roberto Cavalli, combined with the distribution of European-based brands by the Italian subsidiary, contributed to this increase.
However, European-based operations faced challenges, with flat net sales of $231 million compared to the exceptional performance in the first quarter of 2023. This was primarily attributed to an unfavorable comparison base in Eastern Europe, coupled with sourcing constraints in certain regions, leading to sales shifting to the second quarter of 2024. Among the company’s three largest brands, Coach fragrance sales experienced a rise, while Jimmy Choo and Montblanc saw declines following their remarkable growth rates in the previous year.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Inter Parfums this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Inter Parfums has an Earnings ESP of +0.90%, while it carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies worth considering, as our model shows that these have the correct combination to beat on earnings this time:
Ollie’s Bargain Outlet Holdings, Inc. OLLI currently has an Earnings ESP of +0.77% and a Zacks Rank of 3. The company is likely to register top and bottom-line increases when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for Ollie’s Bargain’s quarterly revenues is pegged at $503.8 million, which indicates growth of 9.7% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ollie’s Bargain’s quarterly earnings of 65 cents suggests a rise of 32.7% from the year-ago quarter’s levels. OLLI has a trailing four-quarter earnings surprise of 7.3%, on average.
International Flavors & Fragrances Inc. IFF currently has an Earnings ESP of +15.59% and a Zacks Rank of 3. The company is likely to register a top and bottom-line decline when it reports first-quarter 2024 numbers. The Zacks Consensus Estimate for International Flavors’ quarterly revenues is pegged at $2.8 billion, which implies a decrease of 7.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for International Flavors’ quarterly earnings of 84 cents suggests a drop of 3.5% from the year-ago quarter’s levels. OLLI has a trailing four-quarter negative earnings surprise of 2.7%, on average.
Dollar General DG currently has an Earnings ESP of +1.88% and a Zacks Rank #3. The company is expected to register top-line growth when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for DG’s quarterly revenues is pegged at $9.86 billion, which implies a rise of 5.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for DG’s quarterly earnings has been unchanged at $1.57 in the past 30 days, which calls for a 32.9% decline from the year-ago quarter’s reported number. Dollar General has a trailing four-quarter negative earnings surprise of 1.3%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Dollar General Corporation (DG) : Free Stock Analysis Report
International Flavors & Fragrances Inc. (IFF) : Free Stock Analysis Report
Inter Parfums, Inc. (IPAR) : Free Stock Analysis Report
Ollie’s Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
