ADM (ADM) Up 6.2% Since Last Earnings Report: Can It Continue?

Core Viewpoint - Archer Daniels Midland (ADM) reported mixed third-quarter results for 2025, with revenues increasing year-over-year but falling short of estimates, while earnings exceeded expectations but declined compared to the previous year [2][3]. Financial Performance - Adjusted earnings were 92 cents per share, surpassing the Zacks Consensus Estimate of 89 cents, but down from $1.09 per share in the same quarter last year [3]. - Total revenues increased by 2.2% year-over-year to $20.4 billion, missing the consensus estimate of $20.7 billion [3]. - Gross profit decreased by 7% year-over-year to $1.3 billion, with a gross margin of 6.2% [5]. Segment Performance - Ag Services & Oilseeds revenues rose 3.5% year-over-year to $15.6 billion, while Carbohydrate Solutions revenues fell 5.9% to $2.7 billion, and Nutrition revenues increased by 4.6% to $1.92 billion [4]. - Adjusted operating profit for Ag Services & Oilseeds dropped 21% year-over-year to $379 million, with the Ag Services subsegment's operating profit rising 78% due to higher export activity [6]. - The Crushing subsegment's operating profit plummeted 93% year-over-year due to lower margins and muted demand [7]. - Nutrition segment reported an operating profit of $130 million, a 24% increase from the previous year, driven by higher margins in Human Nutrition [11][12]. Cash Flow and Guidance - ADM ended the quarter with cash and cash equivalents of $1.24 billion and long-term debt of $7.6 billion [13]. - The company revised its full-year adjusted EPS guidance to a range of $3.25 to $3.50 per share, down from approximately $4.00 [13]. Market Reaction - There has been a downward trend in estimates revision, with the consensus estimate shifting down by 13.16% [14]. - ADM currently holds a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the coming months [16]. Industry Comparison - ADM operates within the Zacks Agriculture - Operations industry, where competitor FMC reported a revenue decline of 9.8% year-over-year [17].