Gold prices steady ahead of Fed decision; weekly weakness noted
Investing.com -- Sensient Technologies Corporation (NYSE:SXT) reported first-quarter earnings that beat analyst estimates, despite revenue falling short of expectations. The company’s stock surged 3.5% following the announcement, as investors focused on strong local currency growth and an optimistic full-year outlook.
The flavor and color provider posted adjusted earnings per share of $0.86 for the quarter ended March 31, 2025, slightly below the analyst consensus of $0.87. Revenue came in at $392.3 million, missing the $398.37 million estimate but representing a 2% increase YoY. On a local currency basis, revenue grew 4.1% compared to the same period last year.
Sensient’s Chairman, President, and CEO Paul Manning commented, "As expected, Sensient got off to a strong start in the first quarter of 2025, building on the momentum from the previous year. Our results are driven by solid volume growth and sales wins, particularly in natural colors."
The company’s Color Group led the growth with an 8.2% increase in local currency revenue, while the Flavors & Extracts and Asia Pacific segments saw more modest gains of 1.7% and 4.8%, respectively.
Looking ahead, Sensient reaffirmed its full-year 2025 guidance, projecting adjusted diluted EPS between $3.13 and $3.23. This outlook, which includes approximately $0.15 of Portfolio Optimization Plan costs, is slightly below the analyst consensus of $3.24 per share. The company expects mid-single-digit local currency revenue growth and mid-single to high single-digit local currency adjusted EBITDA growth for the year.
Despite the mixed results, the market responded positively to Sensient’s report, with the stock climbing 3.5% in early trading, suggesting investors are optimistic about the company’s growth trajectory and ability to navigate current market conditions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.