Archer Daniels Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Archer Daniels (NYSE:ADM) will unveil its latest earnings on Tuesday, February 5, 2013. 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 Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 58 cents per share, a rise of 13.7% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 55 cents. Between one and three months ago, the average estimate moved up. It has risen from 57 cents during the last month. Analysts are projecting profit to rise by 7.6% compared to last year’s $2.42.

Last quarter, the company came in at profit of 50 cents per share against a mean estimate of net income of 44 cents per share, beating estimates after missing them in the previous quarter. In the fourth quarter of the last fiscal year, it missed forecasts by 24 cents.

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Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.72 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 7.64 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 733.1% to $17.56 billion while assets rose 87.1% to $30.15 billion.

A Look Back: In the first quarter, profit fell 60.4% to $182 million (28 cents a share) from $460 million (68 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 0.4% to $21.81 billion from $21.9 billion.

Analyst Ratings:

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 0.9% in the fourth quarter of the last fiscal year and dropped again in the first quarter.

Heading into this earnings announcement, net income has dropped 51.5% on average for the last four quarters.

Wall St. Revenue Expectations: Analysts predict a rise of 1.5% in revenue from the year-earlier quarter to $23.67 billion.

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