It has been about a month since the last earnings report for Archer Daniels Midland (ADM) . Shares have added about 2.8% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is ADM due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Archer Daniels’ Q1 Earnings Beat Estimates, ...

Stocks outperform all other assets over time. Not gold, bonds, oil, U.S. Treasuries or real estate surpass the wealth-generating abilities of stocks over the last 100 years. If you want to get rich, buying stocks is the way to go.But which stocks to buy? The asset managers at Hartford Funds looked at the performance of the benchmark S&P 500 going all the way back to 1930. They found that no matter what time frame they looked at, dividend stocks never had a losing decade. Even during the so-called “lost deca ...

Fundamentally, the case for dividend kings to buy couldn’t be simpler: investors are banking on the proven stability of the underlying enterprises. Since qualifying for the dividend king title involves providing rising annual payouts for at least 50 consecutive years, you can bet that these companies benefit from reliable businesses.Obviously, this reliability offers much confidence to investors during a period of economic challenges. Not only that, the leadership teams of these entities will be fighting to ...

Archer Daniels Midland Company (ADM) appears well poised for growth, thanks to its robust business strategies. The company is significantly progressing on its three strategic pillars, which are optimize, drive and growth. The company is actively managing productivity and innovation as well as aligning work to the interconnected trends in food security, health and wellbeing.Management reaffirmed its earlier earnings per share (EPS) guidance for the full year. The company envisions adjusted EPS in the band of ...

Industry Overview - The Zacks Agriculture – Operations industry is facing challenges such as fluctuating commodity prices, rising input costs, trade uncertainties, and elevated operational expenses, impacting productivity and profitability [1][3] - The industry includes companies involved in the production, transportation, storage, processing, and distribution of agricultural commodities, as well as those engaged in dairy operations and food ingredient development [2] Current Challenges - Elevated costs due to inflation have led to increased production costs, squeezing profit margins for agricultural companies [3] - Companies are experiencing higher selling, general and administrative (SG&A) expenses due to performance-related compensation and technology investments [4] Export Projections - The U.S. Department of Agriculture projects agricultural exports for fiscal 2024 to reach $170.5 billion, an increase of $1 billion from previous forecasts, driven by livestock, dairy, grains, and feeds [4] Demand Trends - There is a robust demand for organic products as consumers increasingly seek healthier food options, prompting companies to adopt organic production techniques [5] - Innovations in food processing and strong demand from emerging markets are expected to support industry growth [5] Industry Performance - The Zacks Agriculture – Operations industry ranks 148 out of over 250 Zacks industries, placing it in the bottom 41%, indicating dull near-term prospects [6] - The industry has underperformed the S&P 500, with a collective decline of 16.4% over the past year compared to a 25.7% increase for the S&P 500 [8] Valuation Metrics - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 12.81X, significantly lower than the S&P 500's 20.86X and the sector's 17.82X [9] Company Highlights - **Adecoagro (AGRO)**: The company has seen a 35.4% increase in shares over the past year, with a consensus estimate for 2024 earnings at $1.69 per share, suggesting a 16.6% growth from the previous year [12] - **Corteva (CTVA)**: The company has a Zacks Rank 3 and has delivered an earnings surprise of 43.9% on average over the past four quarters, with a 1.7% increase in stock price over the past year [15] - **Archer Daniels Midland (ADM)**: The company has a Zacks Rank 3 and has experienced a 16.6% decline in stock price over the past year, with a consensus estimate for 2024 earnings at $5.60 per share [16] - **Alico (ALCO)**: The company has a Zacks Rank 3 and expects significant sales growth of 101.8% year-over-year, with a stock price increase of 21% in the past year [19]

Investing in dividend stocks is a great strategy for wealth accumulation, especially when coupled with the pursuit of undervalued opportunities. Interestingly, as we move further into May 2024, finding undervalued dividend stocks might seem hard since major indices are still hovering near all-time highs. Nevertheless, there are several such names.Why? Well, with interest rates remaining elevated, investors continue to shift their focus towards higher-yielding fixed-income investments such as T-bills due to ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 1-44 ARCHER-DANIELS-MIDLAND COMPANY (Exact name of registrant as specified in its charter) Delaware 41-0129150 (State or ...

Archer Daniels Midland Company (ADM) posted first-quarter 2024 results, with the top line missing the Zacks Consensus Estimate and the bottom line beating the same. Both metrics declined year over year.Adjusted earnings of $1.46 per share in the first quarter outpaced the Zacks Consensus Estimate of $1.35. However, the figure declined 30% from earnings of $2.09 per share in the year-ago quarter. On a reported basis, Archer Daniels’ earnings were $1.42 per share, down 33% from the year-ago quarter’s $2.12.Re ...

First Quarter 2024 Earnings Conference Call April 30, 2024 Proprietary business information of ADM. Proprietary business information of ADM. Cautionary Note Regarding Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical fact included in this release, are forward-looking statements. You can identify forwa ...

Financial Data and Key Metrics - Q1 2024 adjusted EPS was $1.46, a decrease from the prior year, driven by lower pricing and execution margins in the AS&O business [10] - Adjusted segment operating profit was $1.3 billion, down 24% YoY, primarily due to declines in ag services, oilseeds, and nutrition [10] - Operating cash flow before working capital was $900 million, reflecting strong cash generation despite market headwinds [4] - Trailing fourth quarter average adjusted ROIC was 11.2%, demonstrating disciplined capital management [4] Business Line Performance Ag Services & Oilseeds (AS&O) - AS&O operating profit was $864 million, impacted by lower commodity prices and ample supplies, partially offset by improved process volumes and manufacturing costs [12] - Ag Services subsegment saw lower operating profit due to stabilized trade flows and slower farmer selling in South America [13] - Crushing subsegment operating profit was $232 million, negatively impacted by increased imports of used cooking oil and anticipation of large South American supplies [13] - Refined products and other subsegment results were $157 million, with weaker North American refining margins due to increased used cooking oil imports [14] Carbohydrate Solutions - Carbohydrate solutions segment operating profit was $248 million, driven by strong demand and volume growth in BioSolutions [14] - Starches and sweeteners margins were strong in North America, but domestic ethanol margins were pressured due to high industry production and elevated stocks [15] - Vantage corn processing subsegment saw improved margins due to strong export demand for sustainably certified ethanol [15] Nutrition - Nutrition revenues were $1.8 billion, with human nutrition subsegment revenues partially offset by lower volumes in plant-based proteins and normalizing pricing in texturants markets [15] - Nutrition segment operating profit was $84 million, with human nutrition subsegment results of $76 million, lower than the prior year due to higher fixed cost absorption at Decatur East [16] - Animal nutrition subsegment results were $8 million, higher YoY due to cost optimization efforts and lower commodity prices [17] Market Performance - South America saw improved crush margins in Q2 due to increased farmer selling and currency devaluation, while Argentina faced challenges due to economic uncertainty and strikes [27] - North America is expected to see lower crush margins in Q2 and Q3, with recovery anticipated in Q4 due to increased soybean oil demand from renewable diesel facilities [28] - Europe is expected to maintain crush margins around $40 per metric ton, while China remains spot-driven with limited visibility [44] Strategic Direction and Industry Competition - The company is focused on three priorities for 2024: managing through the cycle, nutrition recovery, and enhanced return of cash to shareholders [5] - ADM is advancing its BioSolutions platform, with nearly 10% volume growth in Q1, and has increased its regenerative agriculture acreage goal to 5 million acres by 2025 [6] - The Drive for Excellence program has generated a pipeline of 1,200 validated proposals, targeting $500 million in cost savings over the next two years [7] - The company is leveraging its improved M&A playbook to integrate recent flavor acquisitions, with better-than-expected results forecasted [8] Management Commentary on Operating Environment and Future Outlook - Management expects global grain and oilseed supplies to increase, leading to easing commodity prices and moderating soybean crush margins in 2024 [19] - The company anticipates strong demand for vegetable oil from renewable diesel facilities, despite increased imports of used cooking oil [20] - ADM remains confident in its full-year planning assumptions, with expectations for sequential improvement in nutrition demand fulfillment and recovery in the second half of the year [22] Other Key Information - The company returned $1.3 billion to shareholders via share repurchases in Q1, with an additional $1 billion planned for the remainder of the year [18] - Corporate net interest expense guidance was raised from $500 million to $525 million due to reduced expectations for Federal Reserve rate cuts in 2024 [19] - The Decatur East plant is expected to resume operations in Q4, with headwinds in specialty ingredients persisting through the year [40] Q&A Summary Question: Impact of South American crop timing on crush margins [26] - South American farmer selling has improved in Brazil due to harvest progress and currency devaluation, while Argentina faces challenges from economic uncertainty and strikes [27] - Crush margins are expected to move to the lower end of the guided range in Q2 and Q3, with recovery anticipated in Q4 as U.S. production comes online [28] Question: Carbohydrate solutions segment outlook [31] - Strong demand and margins in starches and sweeteners are expected to drive Q2 performance, with solid export demand for sustainably certified ethanol supporting VCP results [32] Question: Refined products margin pressures [35] - North American refining margins were negatively impacted by increased used cooking oil imports, while EMEA and South America saw stronger biodiesel margins [36] - Timing impacts resulted in a $72 million negative YoY impact in Q1 [37] Question: Decatur East plant restart timeline [39] - The plant is expected to resume operations in Q4, with headwinds in specialty ingredients persisting through the year [40] Question: Soy crush margin outlook [42] - North America is expected to see lower crush margins in Q2 and Q3, with recovery in Q4 driven by increased soybean oil demand from renewable diesel facilities [43] Question: Ethanol margin divergence between starches and sweeteners and VCP [47] - VCP results were supported by strong export demand for sustainably certified ethanol, while domestic ethanol margins were pressured by high industry production [48] Question: Nutrition business restructuring [51] - The company is focusing on portfolio optimization and simplification, with a shift toward higher-margin specialty products in animal nutrition [52] - Sequential improvement in nutrition is expected, with headwinds from raw material price corrections and plant-based protein demand shifts [53] Question: Volume trends in nutrition [59] - Volumes held up well across most segments, except for specialty ingredients, which were impacted by the Decatur East plant downtime [61] Question: Soy meal demand and cost savings initiatives [63] - Increased soybean meal demand is expected in Q4, driven by lower prices and higher inclusion rates in poultry feed [64] - The Drive for Excellence program targets $500 million in cost savings, with 1/3 of the initiatives already showing progress [67] Question: Impact of blenders tax credit transition [69] - The transition to a producers tax credit in 2025 could create price discovery challenges, with regulatory clarity needed to support industry investments [70] Question: Green Bison JV contribution [75] - The Green Bison JV is ramping up and is expected to contribute to profits in 2024, with full capacity expected soon [77] Question: Sustainability initiatives in dry mills [79] - ADM is expanding its carbon capture and sequestration efforts, with plans to increase capacity from 2 to 7 wells, supporting decarbonization goals [80] - The doubling of regenerative agriculture acreage is driven by customer demand for Scope 3 emissions reductions and voluntary market growth [82]