Yahoo Finance Analysts Are Updating Their Ingredion Incorporated (NYSE:INGR) Estimates After Its Full-Year Results
It's been a pretty great week for Ingredion Incorporated (NYSE:INGR) shareholders, with its shares surging 11% to US$83.41 in the week since its latest yearly results. Ingredion reported US$6.0b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$5.15 beat expectations, being 4.0% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Ingredion
Taking into account the latest results, the current consensus from Ingredion's six analysts is for revenues of US$6.34b in 2021, which would reflect a reasonable 5.9% increase on its sales over the past 12 months. Statutory earnings per share are predicted to bounce 25% to US$6.45. In the lead-up to this report, the analysts had been modelling revenues of US$6.37b and earnings per share (EPS) of US$6.35 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$93.67, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Ingredion at US$120 per share, while the most bearish prices it at US$82.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Ingredion's rate of growth is expected to accelerate meaningfully, with the forecast 5.9% revenue growth noticeably faster than its historical growth of 2.1%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.2% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Ingredion is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$93.67, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Ingredion analysts - going out to 2025, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Ingredion .
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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