The Andersons Earnings: Here’s Why Shares are Down Now

The Andersons, Inc. (NASDAQ:ANDE) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.98%.

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The Andersons, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 31.63% to $0.67 in the quarter versus EPS of $0.98 in the year-earlier quarter.

Revenue: Rose 11.86% to $1.27 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Andersons, Inc. reported adjusted EPS income of $0.67 per share. By that measure, the company missed the mean analyst estimate of $0.87. It missed the average revenue estimate of $1.34 billion.

Quoting Management: “Our Rail Group continues to perform well, as they skillfully manage their railcar portfolio. We are pleased with the continued strong performance of Lansing Trade Group and improved margins in the ethanol business,” CEO Mike Anderson stated. “The 2012 drought, however, continues to impact our profitability. As we have mentioned before, this will continue to impact our grain and ethanol businesses this year. While the Plant Nutrient Group was impacted by adverse weather in the first quarter, they should benefit from an anticipated record corn crop planting in the second quarter, as long as the weather cooperates,” added Mr. Anderson.

Key Stats (on next page)…

Revenue decreased 24.32% from $1.68 billion in the previous quarter. EPS decreased 16.25% from $0.80 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.55 to a profit $1.58. For the current year, the average estimate has moved up from a profit of $4.09 to a profit of $4.19 over the last ninety days.

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