Ingredion's Mixed Q3 Results Lead to Mild Stock Uptick Amid Upgraded Guidance

WESTCHESTER, Ill. - Ingredion Incorporated (NYSE:INGR) reported third-quarter earnings that surpassed analyst estimates, driven by strong performance across its segments. The company also raised its full-year guidance, resulting in a 1.46% increase in its stock during early trading.

The global provider of ingredient solutions reported adjusted earnings per share of $3.05 for the third quarter, exceeding the analyst expectation of $2.60. Revenue came in at $1.87 billion, slightly below the anticipated $1.94 billion but reflecting an 8% decline year-over-year.

Jim Zallie, the company's President and CEO, stated, "Texture & Healthful Solutions demonstrated strong sales volume growth in the third quarter, supporting double-digit operating income growth for the segment."

The company's operating income rose 26% year-over-year to $268 million in the third quarter, while adjusted operating income increased by 29% to $282 million.

Ingredion has raised its adjusted earnings per share guidance for the full year 2024 to a range of $10.35 to $10.65, exceeding its previous forecast and the analyst expectation of $9.97.

The strong quarterly performance was driven by volume recovery, margin improvements, and cost-saving initiatives. However, net sales decreased due to lower raw material costs and the divestiture of its South Korea business.

Looking ahead, Zallie remarked, "We anticipate this momentum will continue through the fourth quarter and into 2025."