IFF To Sell Flavor Specialty Ingredients Business For $220 Mln Cash

US Foods Q4 Profit Rises, Above Estimates – Update

(Adds Outlook)

US Foods Holding Corp (USFD) announced a profit for its fourth quarter that increased from the same period last year and beat the Street estimates.

The company’s earnings came in at $83 million, or $0.37 per share. This compares with $59 million, or $0.26 per share, in last year’s fourth quarter.

Excluding items, US Foods Holding Corp reported adjusted earnings of $138 million or $0.55 per share for the period.

Analysts on average had expected the company to earn $0.53 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter rose 11.5% to $8.515 billion from $7.639 billion last year.


Looking ahead, for the full year, the company expects earnings in line with analysts’ estimates. USFD sees adjusted income per share of $2.45-$2.65. Fourteen analysts, on average, polled by Thomson Reuters expect the firm to earn $2.65 per share, for the period.

US Foods Holding Corp Q4 earnings at a glance (GAAP) :

-Earnings (Q4): $83 Mln. vs. $59 Mln. last year.
-EPS (Q4): $0.37 vs. $0.26 last year.
-Analyst Estimate: $0.53
-Revenue (Q4): $8.515 Bln vs. $7.639 Bln last year.

Watsco Q4 Earnings Spikes

Watsco, Inc. (WSO) Thursday announced a surge in fourth-quarter earnings from the prior year.

The Miami-based industrial distribution company reported quarterly earnings of $137.67 million, up from $78.89 million last year.

On a per-share basis, earnings increased to $3.55 from $2.02 a year ago. On an adjusted basis, earnings were $2.35 per share.

On average, 13 analysts polled by Thomson Reuters expected the company to earn $2.12 per share. Analysts estimates usually exclude special items.

Revenue for the quarter was $1.581 billion, up from $1.511 billion in the same quarter last year. Wall Street was looking for revenue of $1.61 billion.

The company said its Board has authorized an 11 percent increase in annual dividend rate effective in January 2023 to $9.80 per share.

Truist To Sell 20% Stake In Truist Insurance To Stone Point Capital For $1.95 Bln

Truist Financial Corp. (TFC) announced Thursday that it has agreed to sell a 20% stake in its insurance brokerage unit Truist Insurance Holdings, Inc. to funds managed by Stone Point Capital for $1.95 billion.

The transaction represents an aggregate value of $14.75 billion for Truist Insurance, including a common equity value of $9.75 billion and $5.0 billion of inter-company preferred equity issued by Truist Insurance to Truist.

Truist also expects the transaction to be around neutral to net income available to shareholders and earnings per share, with the potential for enhanced growth as the generated capital is deployed over time.

Mubadala Investment Co. and other co-investors are participating in the investment with Stone Point.

The investment is expected to close in the second quarter. Following the deal closure, Truist will own 80% of Truist Insurance, which will continue to be an important contributor for the company.

A five-person Board will be formed to oversee Truist Insurance , comprising four members appointed by Truist and one member appointed by Stone Point.

With the stake sale, the company expects to maintain strategic flexibility and future upside in Truist Insurance, which will continue to benefit from Truist’s operations, access to capital, and client relationships.

Labcorp Guides FY23 Adj. EPS In Line With Estimates – Update

While reporting financial results for the fourth quarter on Thursday, life sciences company Labcorp (LH) initiated adjusted earnings and revenue growth guidance for the full-year 2023.

For the fiscal 2023, the company expects adjusted earnings in a range of $16.00 to $18.00 per share on revenue growth of about 1 to 4 percent.

On average, eight analysts polled by Thomson Reuters expect the company to report earnings of $17.65 per share on revenue growth of 0.5 percent to $15.01 million for the quarter. Analysts’ estimates typically exclude special items.

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Crude Oil Prices Make Mild Recovery

Crude oil prices recovered marginally on Thursday, despite official data from the U.S. showing a large build in inventories.

Data from the Energy Information Administration released on Wednesday showed crude oil inventories increasing by 16.3 million barrels in the week ended February 10 as compared with 2.4 million barrels in the previous week. Markets were factoring in an inventory build of 1.2 million barrels. The build has however reportedly been attributed to a data adjustment.

Prices of the black fuel had slumped on Wednesday as well, based on data released by the American Petroleum Institute on Tuesday which showed an increase of 10.51 million barrels in crude oil stockpile, versus expectations of a rise of 0.32 million barrels. The previous week had recorded a draw of 2.2 million barrels.

The outlook on global oil demand provided by the OPEC as well as the International Energy Agency in its recent reports also supported prices.

Brent Oil Futures for April settlement traded in a band of $86.20 and $83.88. It is currently at $85.58, up 0.23 percent from the previous close.

West Texas Intermediate (WTI) Crude Oil Futures for March settlement too traded tight, between a high of $79.53 and a low of $78.06. The current price of $78.85 represents a gain of 0.33 percent from Wednesday’s close.

IFF To Sell Flavor Specialty Ingredients Business For $220 Mln Cash

International Flavors & Fragrances Inc. (IFF), a maker of flavors, fragrances, and cosmetic actives, said on Thursday that it has inked a deal to sell its Flavor Specialty Ingredients or FSI business, to Exponent, a British private equity firm, for $220 million in cash.

The deal, scheduled to be closed by the end of third-quarter, is intended to reduce IFF’s outstanding debt.

Frank Clyburn, CEO of IFF, said: “…The sale of FSI will improve our capital structure while allowing us to focus on our core businesses to enhance growth and returns.”

Flavor Specialty Ingredients business has posted more than $100 million in revenue over the last 12 months. It has four dedicated manufacturing and distribution facilities in the U.S., UK, and China, with additional points of distribution in Mexico, Brazil, and Hong Kong.

FSI is a maker of specialty base aromas with a broad range of over 1,000 aroma chemicals and natural extracts, which provide inputs primarily to the flavor market.