NYSE$INGR

Ingredion Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Ingredion's financial performance improved in Q3 2020, driven by increased customer volume demand and operational execution.

Ingredion Incorporated reported positive results for the third quarter of 2020, with sequential improvement in customer volume demand across all regions. Reported and adjusted operating income increased significantly from the second quarter, and the company is focused on managing uncertainties related to the pandemic while supporting customers.

  • Experienced sequential improvement in customer volume demand across all four regions due to easing COVID-19 restrictions.
  • Reported and adjusted operating income increased 35% and 41%, respectively, from the second quarter.
  • Announced the pending acquisition of Verdient Foods Inc. to expand plant-based protein capabilities.
  • Integrated PureCircle’s global team and operations to enhance sugar reduction capabilities.

Headline financials

Total Revenue

$1.5B

Previous: $1.46B+3.1%
EPS (adj)

$1.77

Previous: $1.82-2.7%
Dividends Paid

$45M

No prior period
Free Cash Flow

$92M

Previous: $99M-7.1%
Net Income

$92M

Previous: $99M-7.1%
Operating Income

$153M

Previous: $165M-7.3%
Gross Profit

$326M

Previous: $344M-5.2%
Cash & Equivalents

$553M

Previous: $443M+24.8%
Total Assets

$6.46B

Previous: $6.1B+6.1%

Revenue & EPS history

Ingredion · Revenue · Quarterly

$1.5B

Q3 2020+3.1%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Ingredion · $289M total across 1 segment · Q4 2022

  • F&II LATAM
    $289M

Forward guidance

Due to the continued uncertainty of COVID-19 impacts, the company is withdrawing its full-year guidance. The company anticipates continued impacts from COVID-19 on net sales volume across our operating segments in the fourth quarter, with recovery in net sales generally correlated with increased consumer activity. With pandemic case rates rising and falling across many geographies, we expect away-from-home consumption to continue to fluctuate, suppressing volume demand for ingredients that are formulated in food and beverages consumed away-from-home. We anticipate modestly higher demand for food consumed in home, increasing volumes for ingredients that are part of the recipes for these meals.

Tailwinds

  • Modestly higher demand for food consumed in home.
  • Increasing volumes for ingredients that are part of the recipes for these meals.
  • Focus on the resilience of our workforce.
  • Responsibility to the communities in which we operate.
  • Ensuring business continuity for our customers.

Headwinds

  • Continued uncertainty of COVID-19 impacts
  • Guidance remains withdrawn.
  • Continued impacts from COVID-19 on net sales volume across our operating segments in the fourth quarter.
  • Recovery in net sales generally correlated with increased consumer activity.
  • Expect away-from-home consumption to continue to fluctuate, suppressing volume demand for ingredients that are formulated in food and beverages consumed away-from-home.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.8%

Avg return

Earnings day

+0.3%

Avg return

5 days after

-0.2%

Avg return

30 days after

60%

41 / 68 earnings

Positive

+12.6%

Q4 2015

Best reaction

-11.4%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.7%+0.7%-6.8%
Q4 2025+2.9%+2.4%-3.8%
Q3 2025-5.7%-4.9%-5.2%
Q1 2025+3.5%+2.6%+2.3%
Q4 2024-5.6%-5.1%-2.7%
Q3 2024+12.3%+13.1%+10.3%
Q2 2024+5.3%+8.5%+12.4%
Q1 2024+2.9%+4.1%-0.5%
Q4 2023+0.1%-2.2%+5.2%
Q3 2023+4.6%+7.1%+11.0%
Q2 2023-7.8%-9.9%-9.2%
Q1 2023+2.7%+2.6%+1.7%
Q4 2022-2.8%-1.6%-4.8%
Q3 2022+6.3%+6.1%+14.6%
Q2 2022+2.5%+3.0%-6.3%
Q1 2022-1.3%-3.3%+4.1%
Q4 2021-11.4%-10.3%-11.4%
Q3 2021+0.3%+2.7%-1.6%
Q2 2021-4.5%-3.4%-1.1%
Q1 2021-2.8%+0.5%+2.2%
Q4 2020+11.7%+14.1%+22.0%
Q3 2020+1.7%-2.3%+10.5%
Q2 2020-10.3%-9.0%-8.7%
Q1 2020+1.6%+6.7%+11.2%
Q4 2019+7.4%+6.9%-23.6%
Q3 2019+3.8%+5.7%+5.1%
Q2 2019+1.6%-0.5%-0.0%
Q1 2019-5.9%-7.3%-17.4%
Q4 2018-4.6%-5.6%-6.0%
Q3 2018+2.3%+4.3%+3.2%
Q2 2018+2.5%+6.1%+5.0%
Q1 2018-4.4%-6.3%-6.3%
Q4 2017-5.8%-9.3%-8.7%
Q3 2017+3.1%+3.4%+11.5%
Q2 2017-0.3%-1.1%+0.4%
Q1 2017-2.0%-2.8%-6.7%
Q4 2016-7.5%-6.0%-3.8%
Q3 2016-1.6%-0.2%-9.7%
Q2 2016+1.2%+1.6%+3.2%
Q1 2016+7.4%
Q4 2015+12.6%
Q3 2015+1.2%
Q2 2015+6.7%
Q1 2015+4.7%
Q4 2014-4.5%
Q3 2014+1.7%
Q2 2014-3.3%
Q1 2014+3.1%
Q4 2013+5.1%
Q3 2013-5.9%
Q2 2013+9.9%
Q1 2013-1.3%
Q4 2012-0.7%
Q3 2012+10.7%
Q2 2012+1.9%
Q4 2011+0.4%
Q1 2012-1.3%
Q4 2008-1.3%
Q3 2011-0.5%
Q2 2011-6.8%
Q4 2010+2.8%
Q1 2010+2.8%
Q1 2011+2.8%
Q3 2010+4.3%
Q3 2009+4.3%
Q2 2009+1.6%
Q4 2009+1.6%
Q2 2010+1.6%

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