International Flavors & Fragrances Inc. IFF is scheduled to report second-quarter 2026 results on Aug. 4, after the closing bell.
The Zacks Consensus Estimate for sales is pegged at $2.68 billion, indicating a 2.9% dip from the year-ago reported figure.
The Zacks Consensus Estimate for earnings is pegged at $1.14 per share, which has been moved down in the past 60 days. The estimate indicates a year-over-year decline of 0.9%.
IFF’s Earnings Surprise History
International Flavors’ earnings beat the Zacks Consensus Estimates in three of the trailing four quarters and missed in one, the average beat being 4.1%.
What the Zacks Model Unveils for International Flavors
Our model predicts an earnings beat for IFF this time around. 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. That is precisely the case here.
Earnings ESP: IFF has an Earnings ESP of +0.73%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 3.
Factors Likely to Have Shaped IFF’s Q2 Performance
The company has been witnessing volume growth, with broad-based contributions across each of its businesses. IFF’s ongoing efforts to improve productivity and reduce costs are likely to have benefited its margins.
However, International Flavors has been incurring high raw material costs and additional costs related to labor, shipping and cleaning. Despite its pricing actions and focused cost-reduction efforts, these factors are likely to have dented margins in the to-be-reported quarter.
Projections for International Flavors’ Segments in Q2
Our model estimates the Taste segment’s second-quarter sales to rise 2.6% year over year to $647 million. The segment’s adjusted operating EBITDA is projected to be $127 million, indicating growth of 1.7% from the year-ago quarter’s reported numbers.
Our model estimates the Food Ingredient segment’s second-quarter sales to dip 5.4% year over year to $804 million. The segment’s adjusted operating EBITDA is estimated to be $126 million, indicating an increase of 1.6% from the year-ago reported figure.
We expect the Scent segment’s sales to increase 3.5% year over year to $624 million. The ongoing momentum in Consumer Fragrance, as well as improvement in Fragrance Ingredients and Fine Fragrance, is likely to have aided its performance. However, the gains might have been partially negated by higher costs. Our estimate for the segment’s quarterly operating EBITDA is $131 million, indicating a year-over-year rise of 0.4%.
The Health & Biosciences segment’s sales are projected to be $601 million, indicating a 4.3% increase from the year-ago quarter’s reported figure. We expect operating EBITDA to increase 2.1% to $154 million.
IFF Stock’s Price Performance
In the past year, International Flavors shares have gained 13.4% compared with the industry’s 6.9% growth.
Other Stocks to Consider
Here are some Basic Materials stocks, which, according to our model, also have the right combination of elements to post an earnings beat in their upcoming releases.
The Chemours Company CC, scheduled to release second-quarter 2026 earnings on Aug. 4, has an Earnings ESP of +27.17% and currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chemours’ quarterly earnings are pegged at 43 cents per share, indicating a year-over-year dip of 25%. The company delivered a trailing four-quarter average earnings surprise of 69%.
Avient Corporation AVNT, scheduled to release second-quarter 2026 earnings on Aug. 6, has an Earnings ESP of +0.87% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for earnings for Avient for the second quarter of 2026 is 89 cents per share, indicating an 11.2% year-over-year increase. Avient has a trailing four-quarter average earnings surprise of 2.1%.
Wheaton Precious Metals Corp. WPM, slated to release second-quarter 2026 earnings on Aug. 6, currently has an Earnings ESP of +3.20% and a Zacks Rank of 3.
Wheaton Precious Metals’ quarterly earnings are pegged at $1.13 per share, indicating a year-over-year jump of 79%. The company delivered a trailing four-quarter average earnings surprise of 14%.
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International Flavors & Fragrances Inc. (IFF): Free Stock Analysis Report
The Chemours Company (CC): Free Stock Analysis Report
Wheaton Precious Metals Corp. (WPM): Free Stock Analysis Report
Avient Corporation (AVNT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).