Investing.com -- International Flavors & Fragrances Inc (NYSE:IFF) reported third-quarter results that exceeded analyst expectations, but shares fell 3% in after-hours trading Tuesday as the company's raised full-year guidance disappointed investors.
The company posted adjusted earnings per share of $0.83 for the third quarter, beating the analyst consensus of $0.81. Revenue reached $1.94 billion, up 4% from the prior year and above the $1.91 billion analyst estimate. On a comparable currency-neutral basis, sales increased 5% YoY, driven by mid-single digit growth in Scent and Taste segments and low-single digit growth in Health & Biosciences.
IFF raised the low end of its full-year 2026 revenue guidance to a range of $7.5 billion to $7.6 billion, up from the previous range of $7.4 billion to $7.6 billion. However, the midpoint of $7.55 billion falls below the analyst consensus of $7.589 billion. The company also lifted its adjusted operating EBITDA guidance range to $1.55 billion to $1.60 billion from $1.53 billion to $1.60 billion previously.
"IFF delivered a solid third quarter, with improved sales and profitability across all divisions," said Erik Fyrwald, CEO of IFF. "We also generated strong cash flow through the first nine months of 2026 and recently completed our $500 million accelerated share repurchase program."
The company reported adjusted operating EBITDA of $403 million for the quarter, up 6% on a comparable currency-neutral basis. Cash flows from operations for the first nine months totaled $820 million, an increase of $288 million YoY.
IFF noted that fourth-quarter profitability is expected to be softer, particularly in Health & Biosciences, reflecting higher costs and reinvestments to strengthen the business. The company's Food Ingredients divestiture remains on track to close by the end of the second quarter 2027.
Original Article
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