Archer Daniels Midland Earnings: Here’s Why Investors are Selling Shares Now
Archer Daniels Midland Company (NYSE:ADM) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.13%.
Archer Daniels Midland Company Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 38.46% to $0.48 in the quarter versus EPS of $0.78 in the year-earlier quarter.
Revenue: Rose 2.7% to $21.73 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Archer Daniels Midland Company reported adjusted EPS income of $0.48 per share. By that measure, the company missed the mean analyst estimate of $0.52. It beat the average revenue estimate of $21.41 billion.
Quoting Management: “As expected, this was a challenging quarter, with agricultural services negatively impacted by the ongoing effects of last summer’s U.S. drought,” said ADM Chairman and CEO Patricia Woertz. “In oilseeds, our earnings were reduced by challenges in Brazil and depressed margins in cocoa. Our ethanol business improved as declining inventories supported overall industry margins, and we began to see positive results from the actions we’ve been taking to improve the profitability of that business.”
Key Stats (on next page)…
Revenue decreased 12.82% from $24.92 billion in the previous quarter. EPS decreased 20% from $0.60 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 $0.57 to a profit $0.48. For the current year, the average estimate has moved down from a profit of $2.48 to a profit of $2.45 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)