Thursday, May 14, 2015

Inter Parfums (IPAR) Q1 2015 Earnings

                                                                                                                Senior Analyst, James Molinell
Inter Parfums (IPAR) released Q1 2015 earnings Monday, May 11th. The company beat Wall Street Consensus earnings estimates by $0.04 but missed on revenue by $500,000. The company reported $0.32 per share of net income, beating estimates of $0.28 per share. First quarter revenue came in at $109.2 million missing estimates of $109.7 million.

Inter Parfums expects full-year earnings to be $0.98 to $1.00 per share, with revenue of $470 million. Inter Parfums shares have been up 16% since the beginning of the year but saw the biggest rise on Wednesday, May 13th. The company was a big mover as it saw shares rise over 5% on the day. The upside was caused by a decent earnings report on Monday, which led to more shares changing hands than in a normal session. Although the earnings report wasn’t great, it provided confidence in the stock for investors; a sense of stability.

Inter Parfums CEO Jean Madar spoke a lot about foreign currency exchange issues in 2015 as he states “we incurred foreign currency losses of approximately $2 million in the 2015 period versus a negligible foreign currency gain in the 2014 period.” In large part this loss has to do with the weakened Euro in 2015 but is not expected to continue into the long run. Company guidance for 2015 assumes that the dollar remains at current levels. In my opinion this is a rather conservative stand point which most likely will lead to beating guidance for quarters to come.

As of Thursday, May 14, 2015 the stock is priced at $33.24 being down 0.39% on the day.

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