Sensient Technologies Q4 revenue misses on weather impact

Overview

• Flavors and colors provider's Q4 revenue rose 4.5% but missed analyst expectations

• Adjusted EPS for Q4 missed analyst expectations

• Operating income decreased due to higher Portfolio Optimization Plan costs

Outlook

• Sensient expects 2026 local currency revenue growth between mid-single-digit and double-digit

• Company projects 2026 diluted EPS between $3.60 and $3.80

• Sensient forecasts 2026 local currency adjusted EBITDA growth from mid-single-digit to double-digit

Result Drivers

• COLOR GROUP GROWTH - Revenue increased 10.9% in Q4 driven by strong volume growth and higher prices in food and pharmaceutical lines

• FLAVORS & EXTRACTS CHALLENGES - Revenue decreased 0.6% due to lower volumes in agricultural ingredients, partially offset by higher prices

• WEATHER IMPACT - Severe rains caused a $3 mln charge affecting Flavors & Extracts operating income

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialty chemicals peer group is "buy"

• Wall Street's median 12-month price target for Sensient Technologies Corp is $120.00, about 22.5% above its February 12 closing price of $97.93

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nBw9HmrR5a

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