Ingredion stock rose
Before the opening bell on May 3, Ingredion (INGR) reported its earnings for 1Q16. Later in the day, management had a conference call to discuss the results. The stock rose by 6% and closed at $114.03—compared to $107.18 in the previous day’s trading session. The stock reacted well to a strong start to fiscal 2016. It has a positive outlook for fiscal 2016. The company’s earnings beat estimates by a huge margin with exceptional year-over-year growth. We’ll discuss the earnings results later in this series.
Ingredion stock has gained 18% since its last quarter earnings release on January 28. The stock reacted positively to all of the earnings results for all of the quarters in 2015. So far, Ingredion stock has gained ~23% in 2016. It gained 13% in 2015. Ingredion has outperformed the Market—as represented by the S&P 500 Index—by 21% year-to-date as of May 3.
Peers’ stock performances
Ingredion is an Illinois-based processed and packaged food company. Together with its subsidiaries, Ingredion manufactures and sells starches and sweeteners to various industries. In comparison, Ingredion’s peer Bunge (BG) has fallen by 8% so far in 2016. Archer Daniels Midland (ADM) has returned 9%. ConAgra Foods (CAG) has returned 7%.
Specifically, Bunge, Archer Daniels Midland, and ConAgra closed at $61.7, $39.1, and $44.3, respectively, on May 3. The PSPDR S&P Mid Cap Value ETF (MDYV) and the SPDR S&P 400 Mid Cap Growth ETF (MDYG) invest 0.6% and 0.52%, respectively, in Ingredion.
What will we discuss in this series?
We’ll review Ingredion’s 1Q16 performance. We’ll see what drove the earnings increase, the revenue increase, and how the segments contributed. We’ll also discuss what drove the operating profit and gross margins for the first quarter. We’ll look at Ingredion’s outlook for 2016 as well as an update on its acquisitions. We’ll end the series with the stock’s valuation after the earnings results, its moving averages, and Wall Street analysts’ recommendations for the stock.
Let’s start with Ingredion’s revenue in 1Q16.