Archer Daniels Midland Earnings: Everything You Must Know Now

Archer Daniels Midland Company (NYSE:ADM) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Archer Daniels Midland Company Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 21.05% to $0.46 in the quarter versus EPS of $0.38 in the year-earlier quarter.

Revenue: Decreased 0.59% to $22.54 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Archer Daniels Midland Company reported adjusted EPS income of $0.46 per share. By that measure, the company beat the mean analyst estimate of $0.44. It missed the average revenue estimate of $22.87 billion.

Quoting Management: “The team managed well through this period, as tight U.S. crop supplies reduced volumes,” said ADM Chairman and CEO Patricia Woertz. “Also, corn results improved amid volatile ethanol industry conditions.
“During the quarter, we continued our work to improve the company’s future returns and earnings power over the cycle. Our effort to unlock cash reached $2 billion, with the team reaching this milestone a half-year ahead of schedule. And, in cost, we made solid progress toward our goal of $200 million in additional cost reductions by the end of 2014.
“Looking ahead, we’ll be managing through tight crop supplies until the forecast large but delayed U.S. harvest.”

Key Stats (on next page)…

Revenue increased 3.75% from $21.73 billion in the previous quarter. EPS decreased 4.17% from $0.48 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.63 to a profit $0.61. For the current year, the average estimate has moved down from a profit of $2.41 to a profit of $2.37 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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