Ingredion
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Ingredion missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Margins expanded across the board.
Revenue details
Ingredion tallied revenue of $1.68 billion. The seven analysts polled by S&P Capital IQ wanted to see net sales of $1.74 billion on the same basis. GAAP reported sales were 3.2% higher than the prior-year quarter's $1.63 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $1.52. The nine earnings estimates compiled by S&P Capital IQ predicted $1.30 per share. GAAP EPS of $1.45 for Q3 were 29% higher than the prior-year quarter's $1.12 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 18.7%, 170 basis points better than the prior-year quarter. Operating margin was 10.6%, 130 basis points better than the prior-year quarter. Net margin was 6.7%, 130 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $1.65 billion. On the bottom line, the average EPS estimate is $1.42.
Next year's average estimate for revenue is $6.59 billion. The average EPS estimate is $5.50.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 328 members out of 350 rating the stock outperform, and 22 members rating it underperform. Among 96 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 86 give Ingredion a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ingredion is outperform, with an average price target of $67.63.
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