Archer Daniels Midland Misses Where It Counts

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Archer Daniels Midland (NYS: ADM) reported earnings on July 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q4), Archer Daniels Midland beat expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share shrank significantly.


Margins dropped across the board.

Revenue details
Archer Daniels Midland tallied revenue of $22.68 billion. The nine analysts polled by S&P Capital IQ expected net sales of $21.92 billion on the same basis. GAAP reported sales were 0.9% lower than the prior-year quarter's $22.87 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.38. The six earnings estimates compiled by S&P Capital IQ averaged $0.58 per share. GAAP EPS of $0.43 for Q4 were 26% lower than the prior-year quarter's $0.58 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 3.6%, 120 basis points worse than the prior-year quarter. Operating margin was 1.8%, 120 basis points worse than the prior-year quarter. Net margin was 1.3%, 40 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $21.73 billion. On the bottom line, the average EPS estimate is $0.56.

Next year's average estimate for revenue is $90.73 billion. The average EPS estimate is $2.74.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Archer Daniels Midland is hold, with an average price target of $34.71.

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The article Archer Daniels Midland Misses Where It Counts originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Archer Daniels Midland Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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