Why did INGR's EPS underperform forecasts in Q4 2024?

Ingredion's EPS of $1.43 in Q4 2024 underperformed the forecast, despite a positive earnings report, due to a combination of factors:

1. Revenue Decline: Total revenue for the quarter was $1.8 billion, which, although not directly affecting EPS, indicates a decrease from the previous year's $2.033 billion in sales. This decline suggests a potential shortfall in revenue-based earnings contributions, which could impact EPS when combined with other factors.
2. Net Income Increase: Net income for the quarter was reported at $97 million, compared to the previous year's $88 million. This increase, while positive, might not have been sufficient to lift EPS to the expected level if revenue-related earnings were lower due to the sales decline.
3. Expense Management: Ingredion's adjusted operating income saw a 29% increase, marking one of the best third-quarter performances in the company's history. This suggests that the company effectively managed expenses, which could have minimized the impact of lower revenue on net income and, consequently, EPS.

In summary, Ingredion's EPS underperformance in Q4 2024 was likely a result of a combination of lower sales and potentially lower revenue-based earnings, despite strong net income growth driven by effective expense management.