Lower agricultural prices hurt performance at the agricultural company.Shares of Archer-Daniels-Midland (ADM -3.25%) were heading lower today after the agricultural company missed top-line estimates in its first-quarter earnings report. It did beat profit expectations, but earnings still fell.As a result, the stock was down 3.3% as of 11:05 a.m. ET on Tuesday. Falling prices weigh on resultsAs a grain processor and trader, ADM is sensitive to commodity prices, and falling prices due to an increase in supply ...

Archer Daniels Midland (ADM) reported $21.85 billion in revenue for the quarter ended March 2024, representing a year-over-year decline of 9.2%. EPS of $1.46 for the same period compares to $2.09 a year ago.The reported revenue represents a surprise of -2.46% over the Zacks Consensus Estimate of $22.4 billion. With the consensus EPS estimate being $1.35, the EPS surprise was +8.15%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to de ...

Financial Performance - Reported EPS for Q1 2024 was $1.42, with adjusted EPS at $1.46, reflecting a decrease of 33% and 30% respectively compared to Q1 2023[1][5][7] - Adjusted net earnings for Q1 2024 were $750 million, compared to $1,151 million in Q1 2023, reflecting a year-over-year decline of 34.8%[38] - The company reported a net earnings attributable to ADM of $729 million in Q1 2024, down from $1,170 million in Q1 2023, a decline of 37.8%[30] - Adjusted net earnings for the quarter ended June 30, 2023, were $927 million, with a projected decrease to $821 million for the quarter ended September 30, 2023[41] - Net earnings attributable to ADM for the four quarters ended March 31, 2024, totaled $3,042 million[41] Segment Performance - Segment operating profit for Q1 2024 was $1,311 million, down 24% year-over-year, while adjusted segment operating profit was $1,317 million, also a 24% decrease[2][5][7] - The Ag Services & Oilseeds segment reported an operating profit of $864 million, a decline of 29% from the prior year, primarily due to lower trade flows and margins[10][11] - Carbohydrate Solutions segment operating profit was $248 million, down 11% year-over-year, with the Starches & Sweeteners subsegment decreasing by $52 million[12][13] - Nutrition segment operating profit fell to $84 million, a 39% decrease, with Human Nutrition subsegment profit down approximately $62 million[14][15] - Other segment operating profit increased by 25% to $121 million, driven by higher Captive Insurance results[16] Revenue and Profitability - Revenues for Q1 2024 were $21,847 million, down from $24,072 million in Q4 2023, representing a decrease of 9.2%[30] - Gross profit fell to $1,659 million in Q1 2024 from $2,080 million in Q4 2023, a decrease of 20.2%[30] - Segment operating profit decreased to $1,311 million in Q1 2024 from $1,719 million in Q4 2023, a decline of 23.7%[28] Capital and Investments - The trailing four-quarter average adjusted return on invested capital (ROIC) was 11.2%[2] - Total adjusted Return on Invested Capital (ROIC) for the trailing four quarters ended March 31, 2024, was 11.2%[43] - Total adjusted invested capital as of June 30, 2023, was $33,722 million, with a slight decrease to $33,633 million projected for September 30, 2023[42] Cash Flow and Expenses - Cash and cash equivalents decreased to $830 million as of March 31, 2024, down from $899 million a year earlier, a decline of 7.7%[32] - Operating working capital decreased to $10,181 million in Q1 2024 from $13,457 million in Q1 2023, a decrease of 24.4%[32] - Interest expense increased to $166 million in Q1 2024 from $147 million in Q4 2023, a rise of 12.9%[30] - Interest expense for the quarter ended June 30, 2023, was $124 million, with a projected decrease to $97 million for the quarter ended September 30, 2023[41] - Income tax expense for the quarter ended June 30, 2023, was $204 million, with a slight increase to $207 million projected for the quarter ended September 30, 2023[45] Strategic Initiatives - The company is focusing on strategic initiatives including production ramp-up at Green Bison JV and scaling regenerative agriculture efforts[3] - The company aims to enhance comparability of underlying business performance through the use of non-GAAP financial measures like adjusted net earnings and adjusted EBITDA[39] Other Notable Metrics - Total processed volumes increased to 13,794,000 metric tons in Q1 2024 from 13,021,000 metric tons in Q1 2023, an increase of 5.9%[36] - The company reported a total of $1,080 million in depreciation and amortization for the four quarters ended March 31, 2024[45] - Equity earnings from Wilmar increased by 37% to $149 million compared to the prior year[10][11] - Adjusted EBITDA for the quarter ended June 30, 2023, was $1,629 million, with a decrease to $1,491 million projected for the quarter ended September 30, 2023[46] - Total adjustments for net earnings in the quarter ended September 30, 2023, were $173 million, leading to net adjustments of $133 million[41]

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Core Viewpoint - Archer Daniels Midland (ADM) is expected to report a significant decline in quarterly earnings and revenues, with analysts predicting earnings of $1.35 per share, a 35.4% decrease year-over-year, and revenues of $22.4 billion, down 7% from the previous year [1] Revenue and Earnings Estimates - The consensus EPS estimate has been revised down by 2.7% in the last 30 days, indicating a reassessment by analysts [1] - Analysts forecast 'Revenues- Other' at $104.39 million, reflecting a year-over-year increase of 1.4% [2] - 'Revenues- Carbohydrate Solutions' is expected to reach $3.15 billion, showing a decline of 10.9% year-over-year [2] - 'Revenues- Total Ag Services and Oilseeds' is projected at $17.13 billion, indicating a decrease of 7.8% year-over-year [2] Sales to External Customers - 'Sales to external customers- Ag Services and Oilseeds- Crushing' is estimated at $3.23 billion, down 12.3% year-over-year [3] - 'Sales to external customers- Ag Services and Oilseeds- Refined Products and Other' is expected to be $2.92 billion, reflecting an 8.7% decline [3] - 'Sales to external customers- Carbohydrate Solutions- Starches and Sweeteners' is projected at $2.44 billion, indicating a decrease of 10.8% year-over-year [3] - 'Sales to external customers- Nutrition- Human Nutrition' is estimated at $932.21 million, showing a slight decline of 0.4% [3] - 'Sales to external customers- Carbohydrate Solutions- Vantage Corn Processors' is expected to reach $713.54 million, down 10.8% year-over-year [3] Processed Volumes - 'Revenues- Total Nutrition' is projected at $1.83 billion, indicating a year-over-year change of -1.1% [4] - 'Processed volumes - Oilseeds' are estimated at 8,825.02 Kmt, compared to 8,627 Kmt in the same quarter last year [4] - 'Total processed volumes' are expected to reach 13,161.86 Kmt, up from 13,021 Kmt reported in the same quarter last year [4] - 'Processed volumes - Corn' are projected at 4,414.62 Kmt, slightly up from 4,394 Kmt in the same quarter last year [4] Stock Performance - ADM shares have decreased by 2.9% over the past month, compared to a 3.2% decline in the Zacks S&P 500 composite [5] - ADM holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [5]

Core Insights - Global crop supplies have reached a cyclical low, necessitating increased agricultural production to avoid food inflation [2][3] - Three key stocks in the agricultural sector are highlighted: Deere & Co. (DE), Corteva Inc. (CTVA), and Archer-Daniels-Midland Co. (ADM), each offering different risk and reward profiles [2][3] Group 1: Deere & Co. (DE) - Deere's stock is currently priced at $394.31, with a P/E ratio of 11.48 and a dividend yield of 1.49% [6] - The stock has a price target of $433.28, indicating a potential upside of 10% from current levels [6] - Despite a projected 2.5% decline in EPS for the year, Deere's turf and utility equipment sales have seen double-digit growth, suggesting resilience in its business model [6][3] Group 2: Corteva Inc. (CTVA) - Corteva's stock is trading at $54.79, with a P/E ratio of 53.72 and a dividend yield of 1.17% [7] - The stock commands a significant premium, trading at 458% above the agricultural production industry's average P/E of 9.3x, justified by a projected 22.2% EPS growth [7] - Analysts project a price target of $63.29, representing a potential upside of 15% from current levels [7] Group 3: Archer-Daniels-Midland Co. (ADM) - Archer-Daniels' stock is priced at $60.65, with a P/E ratio of 9.48 and a dividend yield of 3.30% [10] - The stock trades at a discount compared to Deere and Corteva, with a price target of $67.50, indicating a potential upside of 11.5% [10] - With a low beta of 0.7, Archer-Daniels offers stability during high inflation periods, making it an attractive option for risk-averse investors [10]

Archer Daniels Midland Company (ADM) is slated to report first-quarter 2024 results on Apr 30, before market open. The company is likely to report top and bottom-line declines when it posts first-quarter 2024 results.The Zacks Consensus Estimate for the company’s quarterly earnings is pegged at $1.35 per share, which suggests a decline of 35.4% from the year-ago quarter’s reported figure. The consensus mark has remained stable in the past 30 days. For first-quarter 2024 revenues, the consensus mark is pegge ...

DURHAM, N.C., April 23, 2024 (GLOBE NEWSWIRE) -- The E.O. Wilson Biodiversity Foundation has named Dr. Alessandro Catenazzi as its new Half-Earth Chair. Catenazzi is a Swiss-Peruvian herpetologist with a strong interest in conservation biology. Much of his work is based in the Andes-Amazon of Peru, focusing on the existence of the Chytrid fungus in amphibians. He is an Associate Professor at Florida International University in Miami. Catenazzi follows the inaugural Half-Earth Chair Piotr Naskrecki. The Foun ...

Archer Daniels Midland Company (ADM) has been witnessing soft trends in the Nutrition segment due to the recent investigation into certain accounting practices related to this segment. This led to a year-over-year segmental revenue decline of 6.7% in fourth-quarter 2023. The company reported an adjusted operating loss of $10 million for the segment in the quarter. Demand headwinds and destocking impacts, along with operational issues with respect to the ERP systems integration, hurt volumes.In the fourth qu ...