Ingredion Declared a Quarterly Dividend of $0.45 per Share

Yesterday’s Consumer Pops and Drops: HRL, FLO, IP, BGS, and WHR

(Continued from Prior Part)

Price movement of Ingredion

Ingredion (INGR) has a market capitalization of $8.6 billion. It rose by 1.2% to close at $117.97 per share on May 18, 2016.

The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -0.96%, 9.6%, and 23.6%, respectively, as of the same date. This means that INGR is trading 3.5% above its 20-day moving average, 7.5% above its 50-day moving average, and 21.7% above its 200-day moving average.

Related ETFs and peers

The Fidelity MSCI Consumer Staples ETF (FSTA) invests 0.38% of its holdings in Ingredion. The ETF tracks a market-cap–weighted index of stocks in the US consumer staples sector. The YTD price movement of FSTA was 2.5% as of May 18, 2016.

The SPDR S&P 400 Mid-Cap Growth ETF (MDYG) invests 0.52% of its holdings in Ingredion. The ETF tracks a market-cap–weighted index of growth companies culled from the S&P 400.

The market capitalizations of Ingredion’s competitors are as follows:

• Archer Daniels Midland (ADM) — $22.6 billion

• Bunge (BG) — $8.6 billion

Ingredion declares dividend

Ingredion has declared a quarterly dividend of $0.45 per share on its common stock. The dividend will be paid on July 25, 2016, to shareholders on record at the close of business on June 30, 2016.

Performance of Ingredion in 1Q16

Ingredion reported 1Q16 net sales of $1,360.0 million, a rise of 2.2% compared to net sales of $1,330.1 million in 1Q15. Sales in the North America and EMEA (Europe, the Middle East, and Africa) regions rose by 11.5% and 3.3%, respectively, and sales in the South America and Asia-Pacific regions fell by 16.7% and 9.5%, respectively, in 1Q16 compared to 1Q15.

The company’s cost of sales as a percentage of net sales fell by 4.8%, and its operating income rose by 43.6% in 1Q16 compared to the prior year’s period.

Its net income and EPS (earnings per share) rose to $127.2 million and $1.73, respectively, in 1Q16, compared to $83.7 million and $1.15, respectively, in 1Q15.

Ingredion’s cash and cash equivalents and inventories rose by 9.9% and 5.7%, respectively, in 1Q16, compared to 4Q15. Its current ratio rose to 3.0x, and its debt-to-equity ratio fell to 1.25x in 1Q16, compared to 2.6x and 1.33x, respectively, in 4Q15.

Projections

The company has made the following projections for 2016:

• adjusted EPS in the range of $6.45–$6.75, excluding acquisition-related and integration costs and impairment and restructuring costs

• an effective tax rate of ~30%–32%

• cash generated from operations in the range of $700 million–$750 million

• capital expenditure of $300 million

In the next and final part of the series, we’ll look at B&G Foods (BGS).

Continue to Next Part

Browse this series on Market Realist:

• Part 1 - Who Were the Outliers in the Consumer Space on May 18?

• Part 2 - How Did Hormel Foods’ Fiscal 2Q16 Turn Out?

• Part 3 - How Did Flowers Foods Perform in 1Q16?