Ingredion (INGR) Misses Q2 EPS by 5c, Sales Beat; FY EPS Narrowed, Enters Accelerated Share Repurchase Plan

Ingredion (NYSE: INGR) reported Q2 EPS of $1.35, $0.05 worse than the analyst estimate of $1.40. Revenue for the quarter came in at $1.57 billion versus the consensus estimate of $1.45 billion.

Ingredion narrowed FY2014 EPS to $5.40-$5.70, versus the consensus of $5.52.

The Company has entered into an Accelerated Share Repurchase (ASR) agreement with JPMorgan Chase Bank, National Association (JPMorgan). Under the terms of the ASR, Ingredion has agreed to repurchase $300 million of its common stock from JPMorgan, in total, with an initial delivery of approximately 3.1 million shares, representing 80% of the shares anticipated to be repurchased based on current market prices. The final number of shares to be repurchased will be based on the volume-weighted average price, less a discount, of our common stock during the term of the transaction, which is expected to be completed no later than the end of the fourth quarter of 2014. The ASR is part of our existing share repurchase program, which had 4.0 million shares available for purchase as of July 30, 2014, and the maximum number of shares to be repurchased under the ASR is limited to 4.0 million shares.

“We are pleased to deliver a good second quarter that reflects the overall positive trajectory of our business,” said Ilene Gordon, chairman, president and chief executive officer. “Volumes were up in all four regions. North America, Asia Pacific and EMEA delivered strong operating income results. In South America, operating income improved in Brazil and Colombia but was offset by anticipated year-over-year declines in Argentina.

“Today, we have also entered into an accelerated share repurchase agreement. This serves two purposes. First, we believe it is appropriate to return additional cash to shareholders even as we continue to look for strategic acquisitions. These actions support our strategy to deploy cash in shareholder friendly ways. Second, we will benefit from the EPS accretion this year and next,” Gordon added.

For earnings history and earnings-related data on Ingredion (INGR) click here.

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