International Flavors & Fragrances ( NYSE: IFF ) tracked higher in early trading on Wednesday after matching revenue estimates with its Q3 earnings report and beating on the EPS line by $0.03. EBITDA of $612M for the quarter was just ahead of the consensus mark for $609M.
Revenue was down 0.3% for the retailer in Q3 as order deceleration hit discretionary categories.
Bank of America noted that both IFF segments tied discretionary spending were flagged as areas of pressure. "This makes sense to us given inflationary pressures on consumer spending trends," noted analyst Matthew DeYoe.
BofA kept a Buy rating on IFF on its view the market underappreciates the opportunity for revenue and margin traction over the coming twelve to eighteen months. The firm also think the market is assessing too large of a penalty to IFF shares for the uncertainty surrounding the DuPont Nutrition & Biosciences acquisition.
Shares of IFF rose 1.33% in early trading.
Dig into the International Flavors & Fragrances earnings conference call transcript.
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International Flavors & Fragrances gains despite flagging consumer discretionary spending pressure