Sensient Technologies Corporation's stock plummeted 14.36% during intraday trading on Friday, following the release of its fourth-quarter financial results which fell short of analyst expectations across key metrics.
The flavors and colors provider reported quarterly adjusted earnings per share of $0.72, missing the analyst consensus estimate of $0.79. Revenue for the quarter reached $393.45 million, which also fell short of the $397.47 million expected by analysts. On a reported basis, earnings per share decreased 15.5% to $0.60 compared to the same period last year, while operating income declined 9.1%.
The company cited several factors for the weaker performance, including a $3 million charge in its Flavors & Extracts segment due to severe weather disruptions from atmospheric river events that affected harvest and production. Furthermore, selling and administrative expenses rose 10% year-over-year. Looking ahead, Sensient's 2026 earnings guidance of $3.60 to $3.80 per share came in below the FactSet consensus estimate of $3.94, contributing to negative investor sentiment.