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Perfume stock IPAR beats and raises estimates stock flat so far



November 10, 2009 – Comments (2) | RELATED TICKERS: IPAR

but it should move up quickly as it has not run ahead of earnings.


* Q3 EPS 24 cents vs est $0.19

* Sees FY EPS $0.74, up from earlier view of $0.70

* Q3 revenue down 5 percent to $117.5 mln

Nov 9 (Reuters) - Fragrance maker Inter Parfums Inc (IPAR.O) posted a better-than-expected third-quarter profit, helped by strong sales of the Burberry brand and foreign exchange hedging activities, and raised its full-year 2009 forecast.

For the full-year, the company expects to earn 74 cents a share on sales of $400 million, up from its earlier view of 70 cents a share on sales of $390 million.

Analysts on average were expecting the company to earn 75 cents a share on revenue of $400.5 million, according to Thomson Reuters I/B/E/S.

For the third quarter, Inter Parfums, whose brands include Burberry, Van Cleef & Arpels and Christian Lacroix, earned $7.3 million, or 24 cents a share, compared with $6.2 million, or 20 cents a share, in the year-ago quarter.

Net sales fell 5 percent to $117.5 million as was earlier announced. [ID:nBNG364430]

Burberry brand sales were up 19 percent in local currency. The company also benefitted from a pre-tax foreign currency gain of $0.9 million for the third quarter, relating to its hedging activities.

Analysts on average were expecting the company to earn 19 cents per share, before items.

Shares of the New York-based company closed at $11.39 Monday on Nasdaq. (Reporting by Abhishek Takle in Bangalore; Editing by Unnikrishnan Nair)

2 Comments – Post Your Own

#1) On November 10, 2009 at 11:44 AM, drgroup (69.49) wrote:

Are you recommending a buy here?

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#2) On November 10, 2009 at 11:51 AM, wolfhounds (41.42) wrote:

This stock has been off my screen a couple of years so i reviewed the financials for the past 5 years after your post. Thanks for the heads up. Perfume companies are doing well lately so I'm not surprised at their numbers. But, as you observe, the stock is cheap. I especially like the fact they are paying down debt with solid cash flow and pay a dividend. Purchased 600 shares @10.97.

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