Inter Parfums Lifts 2021 Outlook After 4Q Beat; Street Sees 12% Downside

Perfumes and cosmetics maker, Inter Parfums, raised its revenue and earnings guidance for 2021 while delivering fourth-quarter results that topped Wall Street estimates.

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Inter Parfums (IPAR) reported 4Q earnings growth of 80.8% to $0.47 per share, exceeding analysts’ expectations of $0.37. Bottom-line growth was driven by higher revenues and operating margins.

The company’s 4Q revenues rose 3.5% year-over-year to $184 million, beating the Street’s estimates of $175.8 million. Europe-based net sales grew 8.1% in the quarter, while US-based sales declined 8.8% year-over-year.

Company CEO, Jean Madar, said, “Our largest European brands Montblanc, Jimmy Choo, and Coach achieved comparable quarter sales growth of 9.8%, 13.4%, and 18.0%, respectively, all the more gratifying in that no new products were launched in that period.” He added that, “We are also very pleased by the preliminary sales of Anna Sui Sky, which began to rollout in the final quarter of 2020, contributing to that brand’s 62.3% increase in fourth quarter sales.”

As for 2021, the company raised its guidance for revenues to between $650-$660 million from earlier forecasts of $610-$625 million provided on Jan. 26. Inter Parfums also increased its 2021 EPS outlook to $1.40-$1.45, higher than the previous guidance range of $1.20-$1.25 per share. Analysts were anticipating 2021 earnings of $1.39 per share. (See Inter Parfums stock analysis on TipRanks).

Following the earnings, Raymond James analyst Joseph Altobello maintained a Hold rating on the stock. In a note to investors, the analyst said that “Q4 results beat on lower A&P [advertising & promotional].”

Overall, the Street has a cautiously optimistic outlook on the stock with a Moderate Buy consensus rating based on 1 Buy and 3 Holds. The average analyst price target of $66 implies downside potential of over 12% to current levels. Shares have gained about 26.1% over the past year.