Archer Daniels Midland Company Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Archer Daniels Midland Company (NYSE:ADM) will unveil its latest earnings on Tuesday, May 1, 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 analyst estimate is for profit of 62 cents per share, a decline of 27.9% from the company’s actual earnings for the year-ago quarter. 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 also has dropped from 66 cents during the last month. Analysts are projecting profit to rise by 19.2% compared to last year’s $2.53.

Past Earnings Performance: For the past three quarters, the company’s quarterly results have come in below analyst’s expectations. Last quarter, the company reported net income of 51 cents per share versus a mean estimate of profit of 77 cents per share.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 6.5% in revenue from the year-earlier quarter to $21.38 billion.

Analyst Ratings: With four analysts rate analysts rating the stock a buy, two rate rating it as a sell, and four rate rating it a hold, analysts are bullish on the stock.

A Look Back: In the second quarter, profit fell 89.1% to $80 million (12 cents a share) from $732 million ($1.14 a share) the year earlier, missing analyst expectations. Revenue rose 11.4% to $23.31 billion from $20.93 billion.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 30% over the last four quarters.

The company is hoping to rebound with this earnings release after a net income drop last quarter. Net income rose 33.3% in the first quarter before dropping in the second quarter.

Stock Price Performance: Between January 30, 2012 and April 25, 2012, the stock price rose $1.35 (4.6%), from $29.54 to $30.89. The stock price saw one of its best stretches over the last year between February 15, 2012 and February 24, 2012, when shares rose for seven straight days, increasing 3% (+92 cents) 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, dropping 8.8% (-$2.93) over that span.

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

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