Ingredion's stock fell sharply during Tuesday's intraday session, dropping 5.21% as investors reacted to disappointing first-quarter results and reduced full-year outlook.
The ingredient solutions provider reported adjusted earnings per share of $2.34 for the first quarter, missing the analyst consensus estimate of $2.47. Additionally, the company lowered its full-year adjusted EPS guidance to a range of $10.45 to $11.15, down from its previous outlook of $11.00 to $11.80 and below the IBES estimate of $11.3.
Operational challenges at the company's Argo facility contributed to the weaker performance, with the Food & Industrial Ingredients—U.S./CAN segment operating income sinking 63% to $34 million. The company also announced plans to close its Cabo, Brazil manufacturing facility by June 30, 2026, which is expected to trigger approximately $43 million in pre-tax, non-recurring charges, including $36 million in impairment charges.