Archer Daniels Midland Company Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Archer Daniels Midland Company (NYSE:ADM) will unveil its latest earnings on Tuesday, January 31, 2012. Archer Daniels Midland processes feedstuffs including oilseeds, cocoa, corn, and wheat. 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 profit of 78 cents per share, a decline of 31.6% 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 79 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 78 cents during the last month. For the year, analysts are projecting net income of $2.98 per share, a decline of 4.8% from last year.

Past Earnings Performance: Last quarter, the company missed estimates by one cent, coming in at profit of 68 cents per share against an estimate of net income of. In the fourth quarter of the last fiscal year, the company also missed expectations.

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

Wall St. Revenue Expectations: Analysts are projecting a rise of 10.4% in revenue from the year-earlier quarter to $23.1 billion.

Analyst Ratings: Analysts are bullish on Archer Daniels Midland Company as three analysts rate it as a buy, two rate it as a sell and five rate it as a hold.

A Look Back: In the first quarter, profit rose 33.3% to $460 million (68 cents a share) from $345 million (54 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 30.4% to $21.9 billion from $16.8 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 35%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 45.6% from the year earlier quarter.

The increase in profit in the first quarter came after net income fell in the previous quarter. In the fourth quarter of the last fiscal year, net income fell 14.6%.

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 November 25, 2011 to January 25, 2012, the stock price had risen $2.18 (7.8%) from $27.90 to $30.08. The stock price saw one of its best stretches over the last year between March 25, 2011 and April 5, 2011 when shares rose for eight-straight days, rising 4.9% (+$1.69) 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% (-$2.95) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?