) reached an all-time high of $60.97 after posting solid third
quarter results, which included a positive EPS surprise, a raised
outlook for the full year and an increased dividend. Earnings
momentum has also advanced since the report. With a year-to-date
return of about 20%, this Zacks #1 Rank (Strong Buy) provider of
ingredients solutions is showing strong momentum.
On October 25, 2012, Ingredion Incorporated announced third quarter
earnings per share of $1.52, beating the Zacks Consensus Estimate
by 17% and last year's result by 27%.
Net sales increased 3% to $1.7 billion based on volumes and price
increases. In addition, operational efficiency led to a 19%
increase in operating income with margins in the quarter standing
Ingredion Incorporated now expects adjusted earnings per share
between $5.47 and $5.57 for the full year, versus the earlier
projection of $5.00 to $5.25.
The company also has a consistent policy of regular dividend
payments along with increases at regular intervals since 1998. Most
recently, it announced an increase of 30% in the quarter's dividend
Earnings Momentum Moves Higher
Over the last 7 days, the Zacks Consensus Estimate for 2012 moved
higher by 5.7% to $5.52. The Zacks Consensus Estimate for 2013 went
up 2.7% to $5.76. These estimates reflect year-over-year growth of
18.0% for 2012 and 4.2% for 2013.
Valuation & Technicals
Ingredion Incorporated is currently trading at a forward P/E
multiple of 11.0, a 26.5% discount from its peer group average of
15.0. On a P/S basis, shares trade at 0.7x, versus the peer group
average of 0.8x. The company offers a ROE of 17.8%, much higher
than the peer group average of 11.7%.
Ingredion Incorporated is headquartered in Westchester, Illinois
and was incorporated in 1906. The company, formerly known as Corn
Products International, Inc, makes starch and sweetener ingredients
for its customer base in North America, South America, the Asia
Pacific, Europe, the Middle East, and Africa. The company currently
has a market capitalization of approximately $4.6 billion.
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