Archer Daniels Midland Meets on the Top Line, Misses Where it Counts
Archer Daniels Midland (NYS: ADM) reported earnings on Jan. 31. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Archer Daniels Midland met expectations on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded, and GAAP earnings per share contracted significantly.
Margins shrank across the board.
Archer Daniels Midland reported revenue of $23.31 billion. The six analysts polled by S&P Capital IQ hoped for revenue of $23.51 billion. Sales were 11% higher than the prior-year quarter's $20.93 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.51. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.77 per share on the same basis. GAAP EPS of $0.12 for Q2 were 89% lower than the prior-year quarter's $1.14 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 3.5%, 240 basis points worse than the prior-year quarter. Operating margin was 1.7%, 220 basis points worse than the prior-year quarter. Net margin was 0.3%, 320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $21.65 billion. On the bottom line, the average EPS estimate is $0.77.
Next year's average estimate for revenue is $89.05 billion. The average EPS estimate is $2.95.
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 $34.23.
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At the time this article was published 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. 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.