International Flavors & Fragrances
stock was tumbling Wednesday after the scents and flavors maker provided disappointing sales guidance and cut its dividend.
Shares of
International Flavors
fell to $75, down 8.6%, which would mark the largest percentage decrease since Aug. 8, 2023, according to Dow Jones Market Data. The stock, which was the second-worst performer in the
S&P 500
on Wednesday, has dropped 22% over the last 12 months.
The company said after the close of trading Tuesday that it expects 2024 revenue of between $10.8 billion and $11.1 billion, below analysts’ consensus of $11.42 billion and a decline from $11.48 billion in 2023.
“As we look ahead, we recognize that the operating environment remains uncertain, yet we are cautiously optimistic that we can deliver improved financial results for our shareholders in 2024,” Chief Executive Erik Fyrwald said in the earnings release.
International Flavors said it would be reducing its quarterly dividend by about 50% to 40 cents a share. The move was being made to improve “financial flexibility,” the company said.
“The reduction should save IFF about $410 million/year that will mainly be used to enable faster balance sheet deleveraging,” Stifel analyst Mark Astrachan said in a research note. He cut his price target to $80 from $87 on the stock.
For the fourth quarter, International Flavors reported earnings of 72 cents a share, below Wall Street estimates of 76 cents. Revenue of $2.7 billion was in line with expectations.
Write to Angela Palumbo at angela.palumbo@dowjones.com
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