In its upcoming report, Archer Daniels Midland (ADM) is predicted by Wall Street analysts to post quarterly earnings of $1.07 per share, reflecting a decline of 21.3% compared to the same period last year. Revenues are forecasted to be $21.93 billion, representing a year-over-year decrease of 4.6%.The current level reflects a downward revision of 1.2% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their ...

Company Performance - Archer Daniels Midland (ADM) closed at $51.67, with a slight increase of +0.02% from the previous day, underperforming compared to the S&P 500's gain of 0.53% [1] - Over the last month, ADM's shares increased by 2.26%, outperforming the Consumer Staples sector's decline of 0.69% and the S&P 500's gain of 1.24% [1] Upcoming Earnings Report - ADM is scheduled to release its earnings on February 4, 2025, with projected EPS of $1.07, indicating a 21.32% decrease compared to the same quarter last year [2] - The consensus estimate for revenue is $21.93 billion, reflecting a 4.58% decline from the same quarter last year [2] Analyst Estimates and Revisions - Recent changes to analyst estimates for ADM are important as they indicate shifts in near-term business trends [3] - Upward revisions in estimates suggest analysts' positive outlook on the company's operations and profit generation capabilities [3] Zacks Rank and Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks ADM as 3 (Hold) [5] - ADM's Forward P/E ratio is 11.24, which is lower than the industry average Forward P/E of 12.67, indicating a valuation discount [6] Industry Context - The Agriculture - Operations industry, part of the Consumer Staples sector, has a Zacks Industry Rank of 88, placing it in the top 36% of over 250 industries [6] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [7]

Core Viewpoint - Archer Daniels Midland Company (ADM) is expected to report a decline in both revenues and earnings for the fourth quarter of 2024, with significant challenges in its Ag Services & Oilseeds segment impacting overall performance [1][2][3]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for ADM's revenues is $21.9 billion, reflecting a decrease of 4.6% year-over-year [1]. - The consensus estimate for earnings per share is $1.07, indicating a decline of over 21% from the previous year's quarter [2]. Segment Performance - The Ag Services & Oilseeds segment is facing underperformance, with operating profit negatively impacted by weak farmer selling and increased logistics costs [3]. - The Crushing sub-segment is expected to be affected by high canola seed prices, despite strong soybean crush margins in EMEA [4]. - The Refined Products & Other sub-segment is anticipated to experience softness in North America due to increased imports of used cooking oil and higher pretreatment capacity, leading to lower refining and biodiesel margins [4]. Management Insights - Management has indicated expectations of lower year-over-year segment operating profit in Ag Services & Oilseeds for Q4 2024, with weak margins in Crushing and Refined Products & Other offsetting improvements in Ag Services [5]. - The adjusted operating profit estimate for Ag Services & Oilseeds is $630 million, with revenues pegged at $17.2 billion [6]. Nutrition Segment Outlook - ADM is focusing on optimizing its organizational and operational structure in the Human and Animal Nutrition segments, which is expected to yield cost benefits [7]. - The consensus estimate for operating profit in the Nutrition segment is $85 million, with revenues expected to be $1.7 billion [8]. Strategic Initiatives - The company is pursuing additional margin opportunities through digital technologies, partnerships, and its BioSolutions platform, with a goal of achieving $500 million in cost savings [9]. Valuation and Market Performance - ADM is trading at a forward 12-month price-to-earnings ratio of 10.93, below its five-year high and the industry average, indicating attractive valuation for investors [11]. - The stock has declined 19.1% over the last six months, contrasting with a 1.0% fall in the industry [12].

This portfolio is aimed at being a dividend growth vehicle that fights against the tide of investors moving in the opposite direction. Being a dividend investor right now is to be a contrarian. I've alwaysI'm a full time value investor and writer who enjoys using classical value ratios to pick my portfolio. Long-term focused on low P/B, P/FCF, Owner Earnings discounting, PEG ratios, the Graham Number and an occasional net-net hunter. I also believe tracking earnings growth versus price appreciation is an es ...

The Zacks Agriculture – Operations industry faces challenges such as fluctuating commodity prices, rising input costs, trade uncertainties and growing operational expenses. These pressures affect productivity, profitability and long-term sustainability, posing hurdles for industry participants.However, the industry is set to benefit from innovation and rising demand for healthy products. Investments in acquisitions, joint ventures and expansions are expected to boost growth, while advancements in assets and ...

Root for the Underdog. Comment below on all your favorite, least favorite, or curiosity stock tickers to make them eligible for my next FA follower report.He is the leader of the investing group The Dividend Dog Catcher , where he shares a minimum of one new dividend stock idea per week with focus on yield or extraordinary financial circumstances. All ideas are archived and available after weekly announcement. Learn moreAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any o ...

Company Performance - Archer-Daniels-Midland (ADM) has experienced a significant decline of nearly 30% in its stock price over the past six months [1] - The company has reported notable contractions across key financial metrics, including revenue, operating profit, EPS, cash from operations, and return on invested capital [1] Market Context - The decline in ADM's performance is attributed to a slowdown in revenue and falling margins [1] Analyst Perspective - The analysis is based on the company's reported financial performance and does not reflect any personal investment positions or business relationships [1]

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Group 1: Mastercard - Mastercard's board approved a stock buyback program of up to $12 billion, indicating the stock is undervalued and expected to rise [16] - The company currently generates a return on invested capital (ROIC) of up to 55%, which supports the decision to reinvest through buybacks rather than dividends [3][10] - Analysts from Morgan Stanley have reiterated an overweight rating on Mastercard, with a fair valuation target of $654 per share, suggesting a potential upside of 23% from current levels [22] Group 2: Kroger - Kroger announced a stock buyback program of up to $7.5 billion, representing approximately 16.6% of its market capitalization, which has attracted institutional investors [17] - The company's ROIC stands at 14%, which is higher than the average return of the S&P 500, making the buyback a more attractive option than dividends [18] - Bank of America has raised its price target for Kroger to $75, implying a potential rally of up to 20.4% from the current trading price [23] Group 3: Archer-Daniels-Midland - Archer-Daniels-Midland's stock is currently priced at $74.02, with a forecasted earnings per share (EPS) growth of 30% over the next 12 months, from $1.03 to $1.33 [25] - The company is expected to recover profitability levels once supply chain issues related to the Russia-Ukraine conflict are resolved [19]

Group 1 - Over 60% of the Fortune 500 Industry Leaders (F500IL) are considered too expensive or have low dividends [1] - Four of the ten lowest priced F500IL are identified as potential buying opportunities, including one that is deemed "safer" [1] Group 2 - A live video series on Facebook, titled "Underdog Daily Dividend Show," highlights portfolio candidates for investment [2] - The series encourages audience interaction by allowing comments on favorite or curious stock tickers for future reports [2]