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Inter Parfums, Inc. IPAR has announced its initial financial guidance for 2025, expecting net sales of $1.51 billion and earnings per share (EPS) of $5.35, both indicating a 4% increase from 2024 estimates. This outlook implies a cautious approach, factoring in global market dynamics, potential geopolitical tensions and policy changes in the United States. The company’s growth is expected to stem from both its existing portfolio and new product innovations.

IPAR’s Established Brands and Strategic Expansions

Inter Parfums is set to deliver an impressive array of product launches in 2025, focusing on both innovation and expansion across European and U.S. markets. For its European operations, the company will introduce new extensions to existing fragrance families, including Montblanc Explorer, Jimmy Choo Man, Coach Woman and Man, and Lacoste L12.12 and Original.

Also, Solferino, a proprietary brand featuring a collection of ten luxury fragrances crafted by renowned perfumers, will debut in 2025. This high-end collection is designed for the niche fragrance market and will be available through an ultra-selective distribution network. By the end of the year, Solferino will also have its first dedicated boutique and an e-commerce platform.

In the United States, the company plans to launch Iconic, a new blockbuster men’s fragrance for GUESS, along with extensions for existing GUESS lines to capitalize on the brand’s strong performance. For MCM, a four-scent collection will be introduced alongside a refreshed look and scent for the MCM Diamond backpack fragrance in the first half of the year. The Ferragamo line will also see significant additions with the introduction of a new pillar, Fiamma and an extension for Ferragamo Men later in 2025.

Further developments include new pillars for several brands, such as two scents for the Donna Karan Cashmere Collection, a blockbuster duo for Abercrombie & Fitch and new lines for Roberto Cavalli. The company is also exploring opportunities to expand into new personal care categories, including body mists and creams.

Inter Parfums’ Confident Outlook Amid Market Challenges

Despite modest growth projections, Inter Parfums remains confident in its ability to achieve record results. The performance of the 2024 holiday season and early 2025 orders will be critical to meeting these targets. With a strong global footprint and a robust portfolio of prestigious brands, the company is well-positioned to navigate market uncertainties and capitalize on new opportunities in both luxury and mainstream markets.

Other Growth Factors of IPAR

Inter Parfums continues to benefit from strong momentum in the fragrance market, driven by its robust portfolio of legacy and new brands, effective marketing strategies and a widespread global distribution network. The company’s third-quarter performance showcased solid growth across major regions, including North America, Western Europe and Asia/Pacific. New additions like Roberto Cavalli and Lacoste have been particularly successful, significantly boosting quarterly sales. These brands are expected to play a pivotal role in driving further growth in the coming year.

European operations have been a key growth driver, with standout performances from Jimmy Choo and Montblanc. U.S. operations have also shown steady progress, led by the success of GUESS and Ferragamo, both of which continue to expand its consumer base with new and innovative product launches.

Wrapping Up

Inter Parfums is poised to leverage its strong portfolio and strategic innovations to drive growth amid a competitive market landscape. With a focus on expanding existing brands and introducing high-end lines like Solferino, the company is well-positioned to meet consumer demand for both classic and luxury fragrances.

Despite the global fragrance market's continued vibrancy and robust demand, the company’s sell-in has been slower than its sell-out, with retailers adopting a leaner inventory approach. High SG&A costs are also a concern. This Zacks Rank #4 (Sell) stock has lost 4% in the past year against the industry’s 19.5% growth. However, Inter Parfums' cautious yet optimistic outlook indicates its commitment to adaptability and resilience, underscoring the company’s readiness to capitalize on emerging opportunities across global markets.

Stocks to Consider

Ingredion Incorporated INGR serves diverse sectors in food, beverage, brewing, pharmaceuticals and other industries. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

INGR has a trailing four-quarter earnings surprise of 9.5%, on average. The Zacks Consensus Estimate for Ingredion’s current financial-year earnings indicates growth of 12.5% from the year-ago reported number.

Freshpet Inc. FRPT is a pet food company that manufactures and markets natural fresh foods, refrigerated meals and treats for dogs and cats in the United States and Canada. It currently carries a Zacks Rank #2 (Buy). FRPT has a trailing four-quarter earnings surprise of 144.5%, on average.

The Zacks Consensus Estimate for Freshpet’s current financial-year sales and earnings indicates growth of 27.3% and 224.3%, respectively, from the prior-year reported levels.

McCormick & Company, Inc. MKC is a leading manufacturer, marketer and distributor of spices, seasonings, specialty foods and flavors to the entire food industry. It currently carries a Zacks Rank #2. MKC has a trailing four-quarter earnings surprise of 13.8%, on average.

The Zacks Consensus Estimate for MKC’s current fiscal-year sales and earnings indicates growth of 0.6% and 8.2%, respectively, from the prior-year reported levels.

Zacks Investment Research

Colgate-Palmolive Company CL stock is doing well on the bourses courtesy of its robust strategic efforts. Shares of this renowned consumer goods company have gained 22% in a year, outperforming the Zacks Soap and Cleaning Materials industry’s 16.4% growth and the broader Consumer Staples sector’s 9.1% rise.

The company has been gaining from pricing and productivity initiatives for a while now. Its innovation strategy and shareholder-friendly moves also bode well.

Currently priced at $91.50, Colgate stock is trading at 16.3% to its 52-week high of $109.30. However, it is trading at a 21.7% premium to its 52-week low mark.

Analyzing Colgate’s Core Strengths

Colgate’s innovation strategy concentrates on growing in adjacent categories and product segments. The company is focused on the premiumization of its Oral Care portfolio through major innovations. Backed by premium innovation, products including CO. by Colgate, Colgate Elixir toothpaste and Colgate enzyme whitening toothpaste have been performing well. Also, at-home whitening and professional whitening products bode well. Its Oral Care business has also been performing well.

Some other notable efforts include the continued expansion of the Naturals and Therapeutics divisions, as well as the Hello Products LLC buyout. CL has been seeing market share growth for its Hill’s Science Diet and Hill’s Prescription Diet across the specialty channels, driven by its science-led innovation and improved brand support. On a category basis, volume growth was led by oral care and pet nutrition in the third quarter of 2024, with the Hill’s business delivering 3.6% volume growth.

CL's Price Performance

The company has re-vamped its innovation model, leveraged global strength across price tiers and invested in marketing and capabilities, all of which contribute to solid brand health and household penetration. Colgate has been gaining from strong pricing and the benefits of funding-the-growth program and other productivity initiatives. In the most recent quarter, pricing improved 3.1% year over year, backed by positive pricing across all divisions, except for North America.

Such initiatives have been bolstering Colgate’s margins for a while. During the third quarter, adjusted gross margin expanded 270 basis points (bps), while adjusted operating profit margin increased 50 bps year over year on higher gross margin. For 2024, management forecasts gross profit margin expansion on an adjusted basis, driven by continued pricing gains, benefits from revenue-growth management initiatives and strength in the funding-the-growth program. CL expects the Base Business’ earnings per share (EPS) to increase in the band of 10-11% year over year.

Bumps in CL’s Growth Trajectory

Colgate has been witnessing inflationary pressures and a challenging macro-economic environment for quite some time now. Raw material inflation and continued rise in packaging also act as deterrents to the company’s profitability. Higher adjusted selling, general and administrative and advertising expenses are concerning.

Management expects continued advertising investment for the rest of the year, primarily focused on brand building and scaling capabilities. It anticipates higher advertising costs for 2024, both on a dollar basis and as a percentage of sales.

Unfavorable foreign currency fluctuations are also hurting the company’s performance. In the reported quarter, currency negatively impacted sales growth by 4.4%. Currency translations were mainly hurt by Argentina and several countries in the Africa/Eurasia division. Sales view for 2024 includes a mid-single-digit negative impact of currency.

Final Words on Colgate

CL’s pricing and productivity initiatives are likely to address cost issues ahead. Colgate also remains committed to rewarding shareholders with share buybacks and dividend payouts. On an annualized basis, the dividend rate is $2.00 per share, up from $1.92 paid previously. Markedly, the company has paid uninterrupted dividends since 1895.

Analysts seem quite optimistic about the company. The Zacks Consensus Estimate for CL’s 2024 EPS has inched up 0.6% in the past 30 days to $3.59. The consensus mark for sales and EPS indicates 3.9% and 11.2% year-over-year increase, respectively. Colgate currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Freshpet, Inc. FRPT, a pet food company, has a trailing four-quarter average earnings surprise of 144.5%. FRPT currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Freshpet’s current financial-year sales and EPS indicates growth of 27.3% and 224.3%, respectively, from the prior-year levels.

Vital Farms VITL, which provides pasture-raised products, currently carries a Zacks Rank #2 (Buy). The consensus estimate for Vital Farms’ current financial-year sales and EPS indicates growth of 27.1% and 88.1%, respectively, from the prior-year levels.

VITL has a trailing four-quarter average earnings surprise of 48.5%.

McCormick & Company MKC, manufacturer and distributor of spices, seasonings, specialty foods and flavors, currently carries a Zacks Rank of 2. MKC has a trailing four-quarter average earnings surprise of 13.8%.

The Zacks Consensus Estimate for MKC’s current financial-year sales and EPS indicates growth of 0.6% and 8.2%, respectively, from the year-ago figures.

Zacks Investment Research

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.

By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.

However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.

Vital Farms (VITL) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Here are three of the most important factors that make the stock of this company a great growth pick right now.

Earnings Growth

Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Vital Farms is 89.9%, investors should actually focus on the projected growth. The company's EPS is expected to grow 88.1% this year, crushing the industry average, which calls for EPS growth of 5%.

Cash Flow Growth

While cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.

Right now, year-over-year cash flow growth for Vital Farms is 310.8%, which is higher than many of its peers. In fact, the rate compares to the industry average of 3.5%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 39.7% over the past 3-5 years versus the industry average of 4.1%.

Promising Earnings Estimate Revisions

Beyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Vital Farms. The Zacks Consensus Estimate for the current year has surged 0.5% over the past month.

Bottom Line

Vital Farms has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination indicates that Vital Farms is a potential outperformer and a solid choice for growth investors.

Zacks Investment Research

Aramark ARMK reported fourth-quarter fiscal 2024 results, wherein the top and bottom lines increased year over year. However, revenues came in below the Zacks Consensus Estimate, while earnings matched the consensus mark.

The solid performance was driven by increased volumes in its food, beverage and service offerings to sports and entertainment venues. In fiscal 2024, the company delivered robust financial performance, reflecting double-digit organic revenue growth, higher profitability and margin expansion.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Aramark Price, Consensus and EPS Surprise

Aramark price-consensus-eps-surprise-chart | Aramark Quote

Aramark’s Quarterly Performance: Key Insights

Aramark delivered adjusted earnings per share (EPS) of 54 cents, up 14% from the 40 cents reported in the year-ago quarter. The metric came in line with the Zacks Consensus Estimate.

Revenues increased 5% year over year to $4,417 million due to solid business base performance and higher volumes across both the U.S. and international segments, along with pricing normalizing from favorable inflation trends in Education. The top line missed the Zacks Consensus Estimate of $4,439 million. Organic revenues rose 7% year over year for the fourth quarter of 2024.

Selling and general corporate expenses declined 12.8% year over year to $65.5 million in the quarter. As a percentage of net sales, SG&A expenses increased 30 bps year over year to 1.5%.

In the fourth quarter of 2024, Aramark’s operating income rose 2% to $219 million. Adjusted operating income witnessed stronger growth, increasing 7% to $271 million. The increase in profitability was driven by higher revenue levels, disciplined cost management and supply chain efficiencies.

Insights Into Aramark’s Segmental Details

Aramark’s FSS United States segment saw revenues increase by 4% year over year, reaching $3,176 million in the fourth quarter of 2024. This growth was fueled by higher per capita spending and strong fan attendance in stadiums within sports & entertainment, increased participation rates and new client acquisition in business and industry, and retail expansion in corrections, including the addition of micro-markets, effectively offsetting the impact of exiting some lower-margin accounts within facilities. Organic revenues also rose 4% year over year.

The company’s International revenues of $1,241 million advanced 9% year over year. The growth was driven by strong performance in the U.K., Germany, Canada and South America. Key industries driving this growth included business & industry, sports & entertainment and extractive services. Organic revenues jumped 16% year over year.

ARMK’s Financial Health Snapshot

Aramark exited the quarter with cash and cash equivalents of $672.5 million, long-term borrowings of $4,307.2 million and total stockholders' equity of almost $3,039 million.

Management approved a new share repurchase program, authorizing the company to buy back up to $500 million of its outstanding common stock. This step reflects the company’s strong capital structure capabilities, which include strategically investing to drive growth, ongoing debt repayment and issuing quarterly dividends.

Management also approved an 11% increase to the quarterly dividend. The new dividend of 10.5 cents per share will be payable on Dec. 12, 2024, to stockholders of record as of Dec. 2.

What is ARMK’s Outlook for FY2025?

For fiscal 2025, ARMK anticipates organic revenue growth of 7.5% to 9.5% compared to the prior year. Adjusted operating income is expected to increase 15% to 18% from the $882 million recorded in 2024. Adjusted EPS is projected to rise 23% to 28% compared to the prior year's figure of $1.55.

This Zacks Rank #3 (Hold) company’s shares have gained 8.8% in the past three months compared to the industry’s decline of 1.2%.

Don’t Miss These Solid Bets

Ingredion Incorporated INGR manufactures and sells sweeteners, starches, nutrition ingredients and biomaterial solutions derived from wet milling and processing corn and other starch-based materials. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

INGR has a trailing four-quarter earnings surprise of 9.5%, on average. The Zacks Consensus Estimate for Ingredion’s current financial year’s earnings indicates growth of 12.5% from the year-ago reported number.

Freshpet Inc. FRPT manufactures, distributes and markets natural fresh meals and treats for dogs and cats. It currently carries a Zacks Rank #2 (Buy). FRPT has a trailing four-quarter earnings surprise of 144.5%, on average.

The Zacks Consensus Estimate for Freshpet’s current financial-year sales and earnings indicates growth of 27.3% and 224.3%, respectively, from the prior-year reported levels.

McCormick & Company, Incorporated MKC is a leading manufacturer, marketer and distributor of spices, seasonings, specialty foods and flavors to the entire food industry. It currently carries a Zacks Rank #2. MKC has a trailing four-quarter earnings surprise of 13.8%, on average.

The Zacks Consensus Estimate for McCormick’s current fiscal-year sales and earnings indicates growth of 0.6% and 8.2%, respectively, from the prior-year reported levels.

Zacks Investment Research