Archer Daniels Midland Company Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Archer Daniels Midland Company (NYSE:ADM) will unveil its latest earnings on Tuesday, August 2, 2011. Archer Daniels Midland Company is a processor of oilseeds, cocoa, corn, wheat and other feedstuffs. The company also manufactures vegetable oil and protein meal, corn sweeteners, flour, ethanol, biodiesel and other food and feed ingredients.

Archer Daniels Midland Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 84 cents per share, a rise of 21.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 89 cents. Between one and three months ago, the average estimate moved down and dropped from 86 cents during the last month. For the year, analysts are projecting profit of $3.33 per share, a rise of 10.3% from last year.

Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by one cent, reporting net income of 86 cents per share against a mean estimate of profit of 85 cents. In the second quarter, the company exceeded forecasts by 37 cents with net income of $1.14 versus a mean estimate of profit of 77 cents.

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Wall St. Revenue Expectations: On average, analysts predict $20.43 billion in revenue this quarter, a rise of 30.1% from the year ago quarter. Analysts are forecasting total revenue of $77.97 billion for the year, a rise of 26.4% from last year’s revenue of $61.68 billion.

Analyst Ratings: Analysts are bullish on this stock with eight analysts rating it as a buy, one rating it as a sell and four rating it as a hold.

Key Stats:

Revenue has now gone up for three straight quarters. In third quarter, revenue rose 32.6% to $20.08 billion while the figure rose 31.5% in the second quarter from the year earlier and 12.6% in the first quarter.

The company has now been profitable for the last eight quarters, and for the last four, profit has risen year over year by an average of more than twofold. The quarter with the biggest boost was the fourth quarter of the last fiscal year, which saw a more than sixfold surge.

Competitors to Watch: Bunge Limited (NYSE:BG), MGP Ingredients, Inc. (NASDAQ:MGPI), Corn Products Intl., Inc. (NYSE:CPO), CHS Inc. (NASDAQ:CHSCP), General Mills, Inc. (NYSE:GIS), SunOpta, Inc. (NASDAQ:STKL), Gruma S.A.B. de C.V. (NYSE:GMK), TreeHouse Foods Inc. (NYSE:THS), Seaboard Corporation (AMEX:SEB).

Stock Price Performance: During May 2, 2011 to July 27, 2011, the stock price had fallen $5.81 (-15.8%) from $36.82 to $31.01. The stock price saw one of its best stretches over the last year between January 4, 2011 and January 19, 2011 when shares rose for 11-straight days, rising 11.7% (+$3.51) over that span. It saw one of its worst periods between May 9, 2011 and May 24, 2011 when shares fell for 12-straight days, falling 8.8% (-$2.98) over that span. Shares are up $1.21 (+4.1%) year to date.

(Source: Xignite Financials)

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