Financial Data and Key Metrics Changes - For Q2 2025, the company reported adjusted operating income of $273 million, the highest for Q2 in company history, while net sales declined by 2% primarily due to lower corn costs [6][19] - Adjusted operating income increased by 1% for the quarter and 12% year-to-date [6][19] - Gross profit dollars grew by 7%, with gross margin up 230 basis points to 26% [19][20] Business Line Data and Key Metrics Changes - The Texture and Healthful Solutions segment saw a 2% increase in net sales and a remarkable 29% rise in operating income, supported by a 3% increase in net sales volume [6][21] - Food and Industrial Ingredients LATAM net sales declined by 5%, impacted by reduced brewing volumes and macroeconomic challenges [20][22] - Food and Industrial Ingredients U.S./Canada segment experienced a 6% decline in net sales, significantly affected by a mechanical fire at the Chicago plant [20][23] Market Data and Key Metrics Changes - The U.S. and Canada markets showed strong performance in the Texture and Healthful Solutions segment, with double-digit growth in clean label solutions [10][12] - LATAM markets faced challenges due to high inflation and economic slowdowns, particularly in Brazil and Mexico [58][59] - The company anticipates a flat to slightly up net sales outlook for the full year 2025, reflecting lower pricing due to corn cost pass-through [29][30] Company Strategy and Development Direction - The company is focusing on business growth through its Texture and Healthful Solutions segment, which is expected to deliver robust performance [15][32] - Cost competitiveness is being pursued through operational excellence, with an expectation to exceed $50 million in savings for the cost to compete program [16][30] - The company is committed to sustainability and has been recognized for its efforts in reducing greenhouse gas emissions [18] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the second half of 2025, highlighting strong underlying volume in the U.S./Canada business despite macroeconomic uncertainties [41][42] - The company expects to recover some impacts from the Chicago plant disruption in the second half of the year [23][32] - Management noted that the demand for clean label solutions and healthful products is expected to continue driving long-term growth opportunities [14][55] Other Important Information - The company has repurchased $55 million of its outstanding common shares and paid out $106 million in dividends [28][29] - Capital expenditures for the year are projected to be between $400 million to $425 million [30] Q&A Session Summary Question: Is the guidance still too conservative? - Management acknowledged the cautious approach due to uncertainties around tariffs and customer demand shifts, but noted strong underlying volume in the U.S./Canada business [37][39] Question: What is driving the operating leverage in Texture and Healthful Solutions? - The increase in operating income was attributed to operational execution, higher utilization, and improved procurement strategies [43][45] Question: What is the outlook for Food and Industrial Ingredients LATAM? - Management indicated that while macroeconomic conditions are challenging, they expect to see improvements as the summer season approaches [58][60] Question: What is the impact of cane sugar versus high fructose corn syrup? - Management does not anticipate a significant impact on HFCS demand and highlighted ongoing efforts in sugar reduction initiatives [67][68] Question: Any updates on the potential sale of the Pakistan asset? - The company is in process with three interested parties for acquiring a majority stake in the Raiffon Mays business [71] Question: What are the expectations for the Argentina joint venture? - Management noted that the recent stabilization of the peso and lower inflation rates have led to more normalized performance expectations for the joint venture [90]

Financial Performance - Q2 2025 - Net sales decreased by 2% from $1.878 billion in Q2 2024 to $1.833 billion in Q2 2025[32] - Gross profit increased by 7% from $446 million in Q2 2024 to $477 million in Q2 2025[32] - Gross profit margin increased by 230 basis points, from 23.7% in Q2 2024 to 26.0% in Q2 2025[32] - Reported operating income increased by 13% from $240 million in Q2 2024 to $271 million in Q2 2025[32] - Adjusted operating income increased by 1% from $270 million in Q2 2024 to $273 million in Q2 2025[32] - Reported diluted EPS increased from $2.22 in Q2 2024 to $2.99 in Q2 2025, an increase of $0.77 per share[32] - Adjusted diluted EPS remained flat at $2.87 in both Q2 2024 and Q2 2025[32] Financial Performance - Year-to-Date (YTD) 2025 - Net sales decreased by 3% from $3.760 billion in YTD 2024 to $3.646 billion in YTD 2025[41] - Adjusted operating income increased by 12% from $486 million in YTD 2024 to $546 million in YTD 2025[14,41] - Adjusted diluted EPS increased by $0.88 per share, from $4.96 in YTD 2024 to $5.84 in YTD 2025[41,42] Full Year 2025 Outlook - The company expects net sales to be flat[45] - The company expects adjusted EPS to be between $11.10 and $11.60[45] - The company expects cash from operations to be between $825 million and $950 million[45]

[Q2 2025 Financial Highlights](index=1&type=section&id=INGREDION%20INCORPORATED%20DELIVERS%20SOLID%20SECOND%20QUARTER%20RESULTS%20AND%20IMPROVES%20FULL-YEAR%20OUTLOOK) Ingredion reported solid Q2 2025 results, driven by Texture & Healthful Solutions, with improved full-year EPS guidance despite some operational challenges [CEO's Overview and Key Results](index=1&type=section&id=CEO's%20Overview%20and%20Key%20Results) Ingredion achieved solid Q2 2025 results, driven by Texture & Healthful Solutions, despite LATAM JV and Chicago plant fire impacts, leading to improved full-year EPS guidance - The Texture & Healthful Solutions segment was a key driver of performance, with **net sales up 2%** and **operating income up 29%**, driven by volume growth in clean label solutions and operational excellence[2](index=2&type=chunk) - The Food & Industrial Ingredients—U.S./Canada segment was negatively impacted by a mechanical fire at the Chicago plant, with plans to offset some of the impact in the second half of the year[2](index=2&type=chunk) Q2 2025 Key Financial Metrics vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Reported Operating Income | - | - | +13% | | Adjusted Operating Income | - | - | +1% | | Reported EPS ($) | $2.99 | $2.22 | +34.7% | | Adjusted EPS ($) | $2.87 | $2.87 | 0% | - Full-year 2025 guidance for reported EPS is raised to a range of **$11.25 to $11.75**, and adjusted EPS is raised to a range of **$11.10 to $11.60**[3](index=3&type=chunk) [Earnings Per Share and Financial Position](index=2&type=section&id=Diluted%20Earnings%20Per%20Share%20%28EPS%29) Q2 2025 Adjusted EPS remained flat at $2.87, while Reported EPS increased, with the company maintaining $1.8 billion total debt and $868 million cash Q2 2025 vs Q2 2024 EPS Reconciliation | Metric | Q2 2024 ($) | Q2 2025 ($) | | :--- | :--- | :--- | | Reported Diluted EPS | $2.22 | $2.99 | | Adjusted Diluted EPS | $2.87 | $2.87 | - The adjusted EPS was **flat YoY**, with margin improvements (**+$0.22**) and share repurchases (**+$0.05**) being offset by lower volume (**-$0.16**) and a higher tax rate (**-$0.07**)[5](index=5&type=chunk) - As of June 30, 2025, total debt was **$1.8 billion** and cash was **$868 million**, compared to **$1.8 billion** and **$1.0 billion** respectively at year-end 2024[5](index=5&type=chunk) - The adjusted effective tax rate for Q2 2025 was **27.2%**, compared to **25.4%** in the prior-year period[5](index=5&type=chunk) [Business and Segment Review](index=3&type=section&id=Business%20Review) This section details Ingredion's Q2 2025 performance across its key segments, highlighting varied results in sales and operating income [Total Ingredion Performance](index=3&type=section&id=Total%20Ingredion) Total Ingredion's Q2 net sales decreased 2% to $1.83 billion due to price mix and lower volume, while reported operating income rose 13% to $271 million Total Ingredion Net Sales (in millions) | Period | 2024 ($) | 2025 ($) | Change | Change excl. FX | | :--- | :--- | :--- | :--- | :--- | | Second Quarter | $1,878 | $1,833 | (2%) | (2%) | | Year-to-Date | $3,760 | $3,646 | (3%) | (2%) | Total Ingredion Operating Income (in millions) | Period | 2024 Reported ($) | 2025 Reported ($) | Change | 2024 Adjusted ($) | 2025 Adjusted ($) | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Second Quarter | $240 | $271 | 13% | $270 | $273 | 1% | | Year-to-Date | $453 | $547 | 21% | $486 | $546 | 12% | - The **2% decrease** in Q2 net sales was driven by unfavorable price mix from lower raw material costs and lower volumes in F&II segments, partially offset by volume growth in the T&HS segment[8](index=8&type=chunk) [Texture & Healthful Solutions](index=4&type=section&id=Texture%20%26%20Healthful%20Solutions) The Texture & Healthful Solutions segment achieved strong Q2 2025 results, with net sales up 2% to $599 million and operating income surging 29% to $111 million T&HS Net Sales (in millions) | Period | 2024 ($) | 2025 ($) | Change | Change excl. FX | | :--- | :--- | :--- | :--- | :--- | | Second Quarter | $588 | $599 | 2% | (1%) | T&HS Segment Operating Income (in millions) | Period | 2024 ($) | 2025 ($) | Change | Change excl. FX | | :--- | :--- | :--- | :--- | :--- | | Second Quarter | $86 | $111 | 29% | 26% | - The **$25 million increase** in Q2 operating income was driven by lower raw material and input costs and increased volumes, partially offset by unfavorable price mix[11](index=11&type=chunk) [Food & Industrial Ingredients - LATAM](index=4&type=section&id=Food%20%26%20Industrial%20Ingredients%20-%20LATAM) The LATAM segment's Q2 2025 net sales decreased 5% to $596 million and operating income fell 2% to $127 million, primarily due to Argentine peso exchange rate impacts F&II LATAM Net Sales (in millions) | Period | 2024 ($) | 2025 ($) | Change | Change excl. FX | | :--- | :--- | :--- | :--- | :--- | | Second Quarter | $630 | $596 | (5%) | (3%) | F&II LATAM Segment Operating Income (in millions) | Period | 2024 ($) | 2025 ($) | Change | Change excl. FX | | :--- | :--- | :--- | :--- | :--- | | Second Quarter | $130 | $127 | (2%) | (1%) | - Q2 results were negatively impacted by the floating exchange rate for the Argentine peso and its corresponding impact on the Argentina joint venture results, which saw a **$10 million decline**[13](index=13&type=chunk) [Food & Industrial Ingredients - U.S./Canada](index=5&type=section&id=Food%20%26%20Industrial%20Ingredients%20-%20U.S.%2FCanada) The U.S./Canada segment's Q2 2025 net sales declined 6% to $523 million and operating income dropped 18% to $86 million due to a mechanical fire and reduced demand F&II U.S./Canada Net Sales (in millions) | Period | 2024 ($) | 2025 ($) | Change | Change excl. FX | | :--- | :--- | :--- | :--- | :--- | | Second Quarter | $555 | $523 | (6%) | (5%) | F&II U.S./Canada Segment Operating Income (in millions) | Period | 2024 ($) | 2025 ($) | Change | Change excl. FX | | :--- | :--- | :--- | :--- | :--- | | Second Quarter | $105 | $86 | (18%) | (17%) | - The **$19 million decrease** in Q2 operating income was mainly due to downtime from a mechanical fire and reduced industrial demand[15](index=15&type=chunk) [All Other](index=5&type=section&id=All%20Other) The 'All Other' segment significantly improved in Q2 2025, with net sales up 10% to $115 million and operating loss narrowing by $9 million to $1 million All Other Net Sales (in millions) | Period | 2024 ($) | 2025 ($) | Change | Change excl. FX | | :--- | :--- | :--- | :--- | :--- | | Second Quarter | $105 | $115 | 10% | 10% | - The Q2 operating loss improved by **$9 million** year-over-year, from a loss of **$10 million** to a loss of **$1 million**, mainly due to higher sales in the plant-based protein business[16](index=16&type=chunk) [Shareholder Returns & Full-Year Outlook](index=6&type=section&id=Shareholder%20Returns%20%26%20Full-Year%20Outlook) Ingredion returned capital to shareholders through dividends and repurchases while raising its full-year 2025 EPS guidance and providing a positive segment outlook [Dividends and Share Repurchases](index=6&type=section&id=Dividends%20and%20Share%20Repurchases) Ingredion returned capital to shareholders in Q2 2025 by paying $52 million in dividends and repurchasing $55 million of common stock year-to-date - Paid **$52 million** in dividends to shareholders in Q2 2025[18](index=18&type=chunk) - Declared a quarterly dividend of **$0.80 per share** on May 22, 2025[18](index=18&type=chunk) - Repurchased **$55 million** of common stock year-to-date[18](index=18&type=chunk) [Updated 2025 Outlook](index=6&type=section&id=Updated%20Third%20Quarter%20and%20Full-Year%202025%20Outlook) Ingredion raised its full-year 2025 EPS guidance, expecting flat net sales and mid-single-digit operating income growth, with strong performance anticipated for Texture & Healthful Solutions Full-Year 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Reported EPS ($) | $11.25 - $11.75 | | Adjusted EPS ($) | $11.10 - $11.60 | | Net Sales | Flat | | Reported & Adjusted Operating Income | Up mid-single-digits | | Effective Tax Rate (Reported & Adjusted) | 26.0% - 27.5% | | Cash from Operations ($M) | $825M - $950M | | Capital Expenditures ($M) | $400M - $425M | - **Full-Year Segment Operating Income Outlook:** - **Texture & Healthful Solutions:** Up low double-digits - **Food & Industrial Ingredients—LATAM:** Up low single-digits - **Food & Industrial Ingredients—U.S./CAN:** Down low single-digits - **All Other:** Approaching breakeven[22](index=22&type=chunk) - For the third quarter of 2025, net sales are expected to be **flat to up low single-digits**, and operating income is expected to be **flat to down low single-digits** compared to Q3 2024[25](index=25&type=chunk) [Condensed Consolidated Financial Statements](index=9&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Ingredion's Q2 2025 condensed consolidated statements of income, balance sheets, and cash flows, detailing financial performance and position [Statements of Income](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q2 2025 net sales decreased 2% to $1.83 billion, while gross profit grew 7% to $477 million, and diluted EPS rose 35% to $2.99 Q2 2025 Income Statement Highlights (in millions) | Metric | Q2 2025 ($M) | Q2 2024 ($M) | Change % | | :--- | :--- | :--- | :--- | | Net sales | $1,833 | $1,878 | (2%) | | Gross profit | $477 | $446 | 7% | | Operating income | $271 | $240 | 13% | | Net income attributable to Ingredion | $196 | $148 | 32% | | Diluted EPS ($) | $2.99 | $2.22 | 35% | [Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Ingredion's total assets increased to $7.78 billion, with total liabilities decreasing to $3.51 billion and stockholders' equity rising to $4.22 billion Balance Sheet Highlights (in millions) | Metric | June 30, 2025 ($M) | Dec 31, 2024 ($M) | | :--- | :--- | :--- | | Total current assets | $3,517 | $3,355 | | Total assets | $7,781 | $7,444 | | Total current liabilities | $1,264 | $1,281 | | Long-term debt | $1,741 | $1,787 | | Total liabilities | $3,505 | $3,554 | | Total stockholders' equity | $4,218 | $3,823 | [Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, cash from operations decreased to $262 million, with net cash decreasing by $136 million due to investing and financing activities Six Months Ended June 30 Cash Flow Highlights (in millions) | Metric | 2025 ($M) | 2024 ($M) | | :--- | :--- | :--- | | Cash provided by operating activities | $262 | $521 | | Cash (used for) provided by investing activities | ($215) | $125 | | Cash used for financing activities | ($204) | ($526) | | (Decrease) increase in cash and cash equivalents | ($136) | $104 | | Cash and cash equivalents, end of period | $861 | $505 | [Supplemental Information and Non-GAAP Reconciliations](index=12&type=section&id=Supplemental%20Financial%20Information) This section provides detailed segment performance data and reconciliations of GAAP to non-GAAP financial measures for a clearer understanding of underlying business trends [Segment Information Summary](index=12&type=section&id=I.%20Segment%20Information%20of%20Net%20Sales%20and%20Operating%20Income) This section details Q2 2025 net sales and operating income by segment, highlighting Texture & Healthful Solutions as a key growth driver and a decline in F&II - U.S./Canada Q2 2025 Segment Operating Income (in millions) | Segment | Q2 2025 ($M) | Q2 2024 ($M) | Change % | | :--- | :--- | :--- | :--- | | Texture & Healthful Solutions | $111 | $86 | 29% | | Food & Industrial Ingredients - LATAM | $127 | $130 | (2%) | | Food & Industrial Ingredients - U.S./Canada | $86 | $105 | (18%) | | All Other | ($1) | ($10) | NM | | **Adjusted Operating Income** | **$273** | **$270** | **1%** | [Reconciliation of GAAP to Non-GAAP Measures](index=13&type=section&id=II.%20Non-GAAP%20Information) Ingredion provides non-GAAP financial measures, including adjusted operating income and EPS, to offer a more consistent comparison of operating results by excluding specific items - Management uses **non-GAAP financial measures** to exclude certain items like restructuring costs, gains on sales, impairment charges, and other specified items to provide a more meaningful comparison of operating results and trends[42](index=42&type=chunk)[43](index=43&type=chunk) [Net Income and EPS Reconciliation](index=13&type=section&id=Reconciliation%20of%20GAAP%20Net%20Income%20attributable%20to%20Ingredion%20and%20Diluted%20Earnings%20Per%20Share) Q2 2025 reported GAAP Net Income of $196 million ($2.99 per share) was adjusted to a non-GAAP Net Income of $188 million ($2.87 per share) after various adjustments Q2 2025 GAAP to Non-GAAP EPS Reconciliation | Metric | Amount ($) | | :--- | :--- | | Reported Diluted EPS (GAAP) | $2.99 | | Restructuring costs | +$0.03 | | Impairment charges (benefit) | -$0.02 | | Other matters (benefit) | -$0.02 | | Tax items (benefit) | -$0.11 | | **Adjusted Diluted EPS (Non-GAAP)** | **$2.87** | [Operating Income Reconciliation](index=15&type=section&id=Reconciliation%20of%20GAAP%20Operating%20Income%20to%20Non-GAAP%20Adjusted%20Operating%20Income) Q2 2025 GAAP Operating Income of $271 million is reconciled to non-GAAP Adjusted Operating Income of $273 million, primarily by adjusting for restructuring costs and other matters Q2 2025 GAAP to Non-GAAP Operating Income Reconciliation (in millions) | Metric | Amount ($M) | | :--- | :--- | | Operating income (GAAP) | $271 | | Restructuring and resegmentation costs | +$3 | | Other matters (benefit) | -$1 | | **Non-GAAP adjusted operating income** | **$273** | [Effective Tax Rate Reconciliation](index=16&type=section&id=Reconciliation%20of%20GAAP%20Effective%20Income%20Tax%20Rate%20to%20Non-GAAP%20Adjusted%20Effective%20Income%20Tax%20Rate) The Q2 2025 reported GAAP effective tax rate of 23.6% was adjusted to a non-GAAP rate of 27.2% after accounting for various tax effects Q2 2025 GAAP to Non-GAAP ETR Reconciliation | Metric | Rate (%) | | :--- | :--- | | As Reported (GAAP) | 23.6% | | Adjustments for non-GAAP items | +3.6% | | **Adjusted Non-GAAP** | **27.2%** | [Forward-Looking Guidance Reconciliation](index=17&type=section&id=Reconciliation%20of%20Expected%20GAAP%20Diluted%20Earnings%20Per%20Share%20to%20Expected%20Adjusted%20Diluted%20Earnings%20Per%20Share) The company reconciles its full-year 2025 GAAP EPS guidance of $11.25-$11.75 to an adjusted EPS guidance of $11.10-$11.60, accounting for various adjustments Full-Year 2025 GAAP to Adjusted EPS Guidance Reconciliation | Metric | Low End ($) | High End ($) | | :--- | :--- | :--- | | GAAP EPS | $11.25 | $11.75 | | Net Adjustments | ($0.15) | ($0.15) | | **Adjusted EPS** | **$11.10** | **$11.60** |

Core Insights - Ingredion Incorporated reported solid second quarter results for 2025, highlighting the strength of its diversified business model, with significant growth in the Texture & Healthful Solutions segment [2][5][10] Financial Performance - Reported diluted EPS for Q2 2025 was $2.99, up 35% from $2.22 in Q2 2024, while adjusted diluted EPS remained stable at $2.87 [3][5] - Total net sales for Q2 2025 decreased by 2% to $1.833 billion, primarily due to lower volume and price mix, despite growth in the Texture & Healthful Solutions segment [10][43] - Reported operating income increased by 13% to $271 million, while adjusted operating income rose by 1% to $273 million compared to the previous year [11][44] Segment Performance - The Texture & Healthful Solutions segment achieved a 2% increase in net sales to $599 million and a 29% rise in operating income to $111 million, driven by lower raw material costs and increased volumes [14][15] - Food & Industrial Ingredients—LATAM saw a 5% decline in net sales to $596 million, with operating income decreasing by 2% to $127 million, impacted by foreign exchange rates and joint venture performance [16][17] - The U.S./Canada segment experienced a 6% drop in net sales to $523 million, with operating income down 18% to $86 million, primarily due to a mechanical fire affecting production [18][20] Guidance and Outlook - The company updated its full-year 2025 guidance, expecting reported EPS in the range of $11.25 to $11.75 and adjusted EPS between $11.10 and $11.60 [25][26] - Full-year net sales are anticipated to be flat, with mid-single-digit growth expected for both reported and adjusted operating income [26][27] - The Texture & Healthful Solutions segment is projected to see low double-digit growth in operating income, while the U.S./Canada segment is expected to decline slightly [27][28]

Market Overview - Wall Street has experienced a rally, with the S&P 500 and Nasdaq reaching multiple record highs due to positive trade negotiations and a strong earnings season [1] - Despite the rally, concerns about the economy persist, particularly regarding high inflation and the Federal Reserve's stance on interest rates [2][8] Federal Reserve Insights - The Federal Reserve is expected to maintain interest rates in the range of 4.25-4.5% during the upcoming FOMC meeting, with no cuts anticipated [5][8] - Retail sales increased by 0.6% in June, indicating resilient consumer spending despite inflationary pressures [5] - The Consumer Price Index (CPI) rose by 0.3% in June, influenced by higher consumer goods prices due to tariffs [6] Investment Recommendations - It is advisable to invest in low-beta defensive stocks from the utility and consumer staples sectors, which include Entergy Corporation, Fortis, Inc., Northwest Natural Holding Company, and Ingredion Incorporated [3][4] - These stocks are characterized by high dividend yields and favorable Zacks Ranks, making them appealing amid inflation and interest rate uncertainties [11] Company Profiles Entergy Corporation - Engaged in electric power production and retail distribution, with a generating capacity of 30,000 MW, including over 8,000 MW of nuclear capacity [9] - Expected earnings growth rate of 6.6% for the current year, with a Zacks Rank of 2 and a dividend yield of 2.72% [10] Fortis, Inc. - Operates in the electric and gas utility sector, primarily in Canada and the Caribbean [12] - Expected earnings growth rate of 4.2% for the current year, with a Zacks Rank of 2 and a dividend yield of 3.63% [12] Northwest Natural Holding Company - Focuses on natural gas distribution systems and pipeline projects, serving residential, commercial, and industrial customers [13] - Expected earnings growth rate of 23.6% for the current year, with a Zacks Rank of 2 and a dividend yield of 4.80% [14] Ingredion Incorporated - Provides ingredient solutions, specializing in nature-based sweeteners and starches for various industries [15] - Expected earnings growth rate of 6.8% for the current year, with a Zacks Rank of 2 and a dividend yield of 2.40% [16]

Core Viewpoint - The market anticipates Ingredion (INGR) will report a year-over-year decline in earnings despite an increase in revenues for the quarter ended June 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Ingredion is expected to post quarterly earnings of $2.78 per share, reflecting a year-over-year decrease of 3.1%, while revenues are projected to reach $1.9 billion, an increase of 1.3% from the previous year [3]. - The consensus EPS estimate has been revised 2.05% higher in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Ingredion matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, which complicates predictions of an earnings beat [12]. - Despite a Zacks Rank of 2 (Buy), the lack of a positive Earnings ESP makes it challenging to predict a favorable outcome [12]. Historical Performance - In the last reported quarter, Ingredion exceeded the expected earnings of $2.44 per share, achieving $2.97, which represented a surprise of +21.72% [13]. - Over the past four quarters, the company has consistently beaten consensus EPS estimates [14]. Industry Comparison - Utz Brands (UTZ), another player in the food industry, is expected to report earnings of $0.19 per share, unchanged from the previous year, with revenues projected at $359.84 million, up 1% [18]. - Utz Brands has an Earnings ESP of -2.7% and a Zacks Rank of 3 (Hold), making it difficult to predict an earnings beat [19][20].

Core Viewpoint - The comparison between Ingredion (INGR) and Danone (DANOY) indicates that Ingredion presents a better value opportunity for investors at this time [1]. Valuation Metrics - Both Ingredion and Danone hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions for both companies [3]. - Ingredion has a forward P/E ratio of 11.80, while Danone has a forward P/E of 18.29, suggesting that Ingredion is more attractively priced [5]. - The PEG ratio for Ingredion is 1.07, compared to Danone's PEG ratio of 5.68, further indicating that Ingredion may be undervalued relative to its growth prospects [5]. - Ingredion's P/B ratio is 2.16, while Danone's P/B ratio is 2.79, reinforcing the notion that Ingredion offers better value [6]. - Based on these valuation metrics, Ingredion has a Value grade of A, while Danone has a Value grade of C [6]. Earnings Outlook - Both companies have solid earnings outlooks, but Ingredion's valuation figures suggest it is the superior value option currently [7].

Company Overview - Ingredion Incorporated (NYSE: INGR) is a leading ingredient solutions company with global operations, providing sweeteners and starches, as well as higher-potential ingredients such as prebiotic fibers and plant-based proteins to the food and beverage market [1] Research Background - The analyst has over 10 years of experience researching companies across various sectors, including commodities like oil, natural gas, gold, and copper, as well as technology companies like Google and Nokia, and many emerging market stocks [1] Content Creation - The analyst transitioned from writing a blog for about 3 years to a value investing-focused YouTube channel, where extensive research on hundreds of different companies has been conducted [1] - The analyst expresses a particular interest in covering metals and mining stocks, while also being comfortable with other industries such as consumer discretionary/staples, REITs, and utilities [1]

Core Insights - Investors should conduct a thorough analysis of a company's financial background rather than relying solely on real-time stock numbers to make informed investment decisions [1] - The interest coverage ratio is a critical metric that indicates a company's ability to meet its interest obligations, with a higher ratio suggesting better financial health [4][5] Company Performance - Urban Outfitters, Inc. (URBN) has an impressive interest coverage ratio and has gained 56.2% over the past year, with a projected EPS growth of 22.2% [10][12] - Ingredion Incorporated (INGR) also shows strong performance with a Zacks Rank of 2, a VGM Score of A, and a projected EPS growth of 6.8%, having risen 11% in the past year [10][12] - The Walt Disney Company (DIS) carries a Zacks Rank of 2 and has a projected EPS growth of 16.3%, with a stock increase of 29% in the past year [10][13] - Hudbay Minerals Inc. (HBM) has a robust interest coverage ratio and is projected to have an EPS growth of 43.8%, with shares rising 20.4% in the past year [10][15] Investment Strategy - A favorable investment strategy includes selecting stocks with an interest coverage ratio above the industry average, a Zacks Rank of 1 or 2, and a VGM Score of A or B for optimal results [8][11] - Additional criteria for stock selection include a minimum price of $5, strong historical and projected EPS growth compared to the industry median, and substantial trading volume [9][10]

Core Insights - All three major U.S. stock indices rose on July 17, 2025, driven by positive retail sales data and a decline in unemployment claims [1][2][11] - Better-than-expected earnings from major tech companies like Netflix contributed to investor confidence [2] - The current market environment suggests a favorable outlook for investing in U.S. stocks, particularly in low-leverage companies [3] Economic Indicators - U.S. retail sales increased by 0.6% in June 2025, following a 0.9% decline in May, exceeding market expectations [1][11] - Labor data indicated a decline in unemployment claims, further supporting market optimism [1] Investment Recommendations - Recommended stocks include Novartis (NVS), ResMed Inc. (RMD), Wabtec (WAB), Elbit Systems (ESLT), and Ingredion Inc. (INGR), all of which are characterized by low leverage and strong earnings growth [3][11] - Each of these stocks holds a Zacks Rank 2, indicating a favorable investment outlook [11] Stock Analysis - Novartis reported a 12% year-over-year increase in net sales and a 29% improvement in earnings per share for Q2 2025 [15][16] - ResMed anticipates an 8.1% year-over-year increase in fiscal fourth-quarter sales, with a long-term earnings growth rate of 15.3% [17][18] - Wabtec's sales are expected to grow by 5.3% year-over-year, supported by a long-term earnings growth rate of 16% [19][20] - Elbit Systems forecasts a 13.8% increase in 2025 sales, with a four-quarter average earnings surprise of 21.12% [21] - Ingredion expects a 1% improvement in 2025 sales, with a long-term earnings growth rate of 11% [22][23]