Archer-Daniels-Midland Earnings Preview
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy ADM?
Source: Yahoo Finance
- Earnings Forecast: Archer-Daniels-Midland is expected to see a 2.8% year-on-year revenue growth this quarter, contrasting sharply with the 7.7% decline recorded in the same quarter last year, indicating market optimism for a recovery despite last quarter's revenue of $18.56 billion, which was down 13.7% year-on-year.
- Analyst Expectations: Analysts have generally reaffirmed their estimates over the past 30 days, suggesting they anticipate the company will maintain stable business performance heading into earnings, even though it missed revenue and adjusted operating income expectations last quarter.
- Peer Performance: In the consumer staples sector, Bunge Global reported an impressive 87.8% year-on-year revenue growth but still fell short of analyst expectations, while Darling Ingredients reported a 12.3% revenue increase in line with consensus, highlighting competitive pressures within the industry.
- Market Sentiment: Investor sentiment in the consumer staples segment has been positive, with average share prices rising 2.8% over the past month, while Archer-Daniels-Midland's stock increased by 2.5%, and the average analyst price target stands at $66.60, below the current share price of $75.25, reflecting cautious market outlook on its future performance.
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Analyst Views on ADM
Wall Street analysts forecast ADM stock price to fall
5 Analyst Rating
0 Buy
2 Hold
3 Sell
Moderate Sell
Current: 74.540
Low
50.00
Averages
56.80
High
61.00
Current: 74.540
Low
50.00
Averages
56.80
High
61.00
About ADM
Archer-Daniels-Midland Company is a global agricultural supply chain manager and processor, providing food security by connecting local needs with global capabilities. It is a human and animal nutrition provider. Its Ag Services and Oilseeds segment includes global activities related to the origination, merchandising, transportation, and storage of agricultural raw materials, and the crushing and further processing of oilseeds, such as soybeans and soft seeds into vegetable oils and protein meals. Carbohydrate Solutions segment is engaged in corn and wheat wet and dry milling and other activities. Nutrition segment is engaged in the creation, manufacturing, sale, and distribution of a wide array of ingredients and solutions, including plant-based proteins, flavors and colors derived from nature, flavor systems, emulsifiers, soluble fiber, polyols, hydrocolloids, probiotics, prebiotics, postbiotics, enzymes, botanical extracts, and other specialty food and feed ingredients and systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Archer-Daniels-Midland Earnings Preview
- Earnings Forecast: Archer-Daniels-Midland is expected to see a 2.8% year-on-year revenue growth this quarter, contrasting sharply with the 7.7% decline recorded in the same quarter last year, indicating market optimism for a recovery despite last quarter's revenue of $18.56 billion, which was down 13.7% year-on-year.
- Analyst Expectations: Analysts have generally reaffirmed their estimates over the past 30 days, suggesting they anticipate the company will maintain stable business performance heading into earnings, even though it missed revenue and adjusted operating income expectations last quarter.
- Peer Performance: In the consumer staples sector, Bunge Global reported an impressive 87.8% year-on-year revenue growth but still fell short of analyst expectations, while Darling Ingredients reported a 12.3% revenue increase in line with consensus, highlighting competitive pressures within the industry.
- Market Sentiment: Investor sentiment in the consumer staples segment has been positive, with average share prices rising 2.8% over the past month, while Archer-Daniels-Midland's stock increased by 2.5%, and the average analyst price target stands at $66.60, below the current share price of $75.25, reflecting cautious market outlook on its future performance.
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Admiral Group Set to Trade Ex-Dividend with £0.90 Payout
- Ex-Dividend Date Approaches: Admiral Group's stock will trade ex-dividend on May 7, requiring investors to purchase shares before this date to qualify for the upcoming £0.90 dividend payment on June 5, ensuring shareholder rights to income.
- Stable Dividend Yield: With a current stock price of £34.29, Admiral Group offers a 6.0% dividend yield, which appears attractive in the current market context, reflecting the company's commitment to returning value to shareholders.
- Dividend and Earnings Relationship: Last year, the company distributed a total of £2.05 in dividends, representing 64% of its earnings, a payout ratio that is typical for the industry, indicating a balance between maintaining dividends and ensuring earnings sustainability.
- Earnings Growth Trend: Over the past five years, Admiral Group's earnings per share have grown at an annual rate of 7.4%, with a similar average annual increase in dividends over the last decade, suggesting strong growth potential in both earnings and dividends, which boosts investor confidence.
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Analysis of Upcoming U.S. Jobs Report Outlook
- Job Market Expectations: According to FactSet consensus estimates, the U.S. is expected to add only 50,000 jobs in April, significantly lower than March's 178,000, indicating signs of economic slowdown that could impact investor confidence.
- Unemployment Rate Stability: The unemployment rate is anticipated to remain steady at 4.3%, suggesting that despite the decrease in job additions, the labor market remains relatively stable, potentially alleviating fears of an economic downturn.
- GDP Growth Situation: The U.S. GDP grew at a seasonally adjusted annualized rate of 2% in the first quarter, higher than the fourth quarter's 0.5% but below the 2.2% estimate, reflecting economic sluggishness that may influence future monetary policy decisions.
- Market Volatility: Despite a strong performance in April, with the S&P 500 and Nasdaq hitting record highs, investors should remain cautious of the upcoming
See More
Archer-Daniels-Midland Stock Outlook Positive
- Steady Growth: Archer-Daniels-Midland has been steadily climbing over the past 12 months, showcasing strong performance in the agricultural processing and food ingredient sectors, with expectations for continued gains in the coming weeks and months, reflecting market confidence in its business model.
- Buy Price Objective: Analysts have set a buy price objective of $82, indicating an optimistic outlook for the stock, suggesting that investors consider buying near this price for potential gains.
- Market Confidence: As a 125-year-old agricultural processing company, its stable business foundation and market demand have attracted investor attention, further enhancing its competitive position in the industry.
- Investment Advice: While no specific financial advice is provided, analysts recommend that investors consult with professional advisors before making decisions to ensure that investment strategies align with individual financial circumstances.
See More
Farmers Shift to Pulses Amid Economic Crisis
- Profit Shift for Farmers: Aaron Smith indicates that due to low wheat prices, he is switching to pulses, which he expects to be the only profitable crop this year, demonstrating farmers' adaptability to market changes.
- Rising Demand for Pulses: USDA data shows a 55% increase in yellow pea acreage over the past 15 years, reflecting growing consumer demand for high-protein foods and prompting farmers to adjust their planting strategies accordingly.
- Agricultural Investment Trends: Major agricultural companies like Archer-Daniels-Midland and Cargill have invested in pulses since 2020, indicating a surge in demand for pea protein and driving the development of related supply chains.
- Nutritionists' Warnings: Despite the ongoing protein craze, nutritionists point out that the average American's protein intake exceeds recommended levels, emphasizing that exaggerated marketing may mislead consumers about the essence of healthy eating.
See More
Republican Lawmakers Propose Year-Round Sales of Higher-Ethanol Gasoline
- Legislative Proposal: A group of Republican lawmakers is set to introduce legislation allowing year-round sales of gasoline containing 15% ethanol, aimed at supporting the agriculture sector and benefiting corn growers, despite historical opposition from the oil industry.
- Biofuel Blending Exemptions: The proposal would limit exemptions from biofuel blending mandates to refineries with a total refining capacity of no more than 75,000 barrels per day, and allow exemptions for refineries at risk of closure, thereby alleviating economic pressures on smaller refiners.
- Industry Opposition: Despite years of advocacy from agricultural groups for such legislation, previous attempts have consistently failed due to the financial burdens that biofuel blending imposes on refiners, highlighting the tension between industry interests.
- Market Impact: Should the legislation succeed, it would provide permanent access to E15 gasoline sales, potentially reshaping the U.S. fuel market, promoting renewable energy use, and driving growth for related companies.
See More
Archer-Daniels-Midland Earnings Preview
- Earnings Forecast: Archer-Daniels-Midland is expected to see a 2.8% year-on-year revenue growth this quarter, contrasting sharply with the 7.7% decline recorded in the same quarter last year, indicating market optimism for a recovery despite last quarter's revenue of $18.56 billion, which was down 13.7% year-on-year.
- Analyst Expectations: Analysts have generally reaffirmed their estimates over the past 30 days, suggesting they anticipate the company will maintain stable business performance heading into earnings, even though it missed revenue and adjusted operating income expectations last quarter.
- Peer Performance: In the consumer staples sector, Bunge Global reported an impressive 87.8% year-on-year revenue growth but still fell short of analyst expectations, while Darling Ingredients reported a 12.3% revenue increase in line with consensus, highlighting competitive pressures within the industry.
- Market Sentiment: Investor sentiment in the consumer staples segment has been positive, with average share prices rising 2.8% over the past month, while Archer-Daniels-Midland's stock increased by 2.5%, and the average analyst price target stands at $66.60, below the current share price of $75.25, reflecting cautious market outlook on its future performance.
See More
Admiral Group Set to Trade Ex-Dividend with £0.90 Payout
- Ex-Dividend Date Approaches: Admiral Group's stock will trade ex-dividend on May 7, requiring investors to purchase shares before this date to qualify for the upcoming £0.90 dividend payment on June 5, ensuring shareholder rights to income.
- Stable Dividend Yield: With a current stock price of £34.29, Admiral Group offers a 6.0% dividend yield, which appears attractive in the current market context, reflecting the company's commitment to returning value to shareholders.
- Dividend and Earnings Relationship: Last year, the company distributed a total of £2.05 in dividends, representing 64% of its earnings, a payout ratio that is typical for the industry, indicating a balance between maintaining dividends and ensuring earnings sustainability.
- Earnings Growth Trend: Over the past five years, Admiral Group's earnings per share have grown at an annual rate of 7.4%, with a similar average annual increase in dividends over the last decade, suggesting strong growth potential in both earnings and dividends, which boosts investor confidence.
See More
Analysis of Upcoming U.S. Jobs Report Outlook
- Job Market Expectations: According to FactSet consensus estimates, the U.S. is expected to add only 50,000 jobs in April, significantly lower than March's 178,000, indicating signs of economic slowdown that could impact investor confidence.
- Unemployment Rate Stability: The unemployment rate is anticipated to remain steady at 4.3%, suggesting that despite the decrease in job additions, the labor market remains relatively stable, potentially alleviating fears of an economic downturn.
- GDP Growth Situation: The U.S. GDP grew at a seasonally adjusted annualized rate of 2% in the first quarter, higher than the fourth quarter's 0.5% but below the 2.2% estimate, reflecting economic sluggishness that may influence future monetary policy decisions.
- Market Volatility: Despite a strong performance in April, with the S&P 500 and Nasdaq hitting record highs, investors should remain cautious of the upcoming
See More
Archer-Daniels-Midland Stock Outlook Positive
- Steady Growth: Archer-Daniels-Midland has been steadily climbing over the past 12 months, showcasing strong performance in the agricultural processing and food ingredient sectors, with expectations for continued gains in the coming weeks and months, reflecting market confidence in its business model.
- Buy Price Objective: Analysts have set a buy price objective of $82, indicating an optimistic outlook for the stock, suggesting that investors consider buying near this price for potential gains.
- Market Confidence: As a 125-year-old agricultural processing company, its stable business foundation and market demand have attracted investor attention, further enhancing its competitive position in the industry.
- Investment Advice: While no specific financial advice is provided, analysts recommend that investors consult with professional advisors before making decisions to ensure that investment strategies align with individual financial circumstances.
See More
Farmers Shift to Pulses Amid Economic Crisis
- Profit Shift for Farmers: Aaron Smith indicates that due to low wheat prices, he is switching to pulses, which he expects to be the only profitable crop this year, demonstrating farmers' adaptability to market changes.
- Rising Demand for Pulses: USDA data shows a 55% increase in yellow pea acreage over the past 15 years, reflecting growing consumer demand for high-protein foods and prompting farmers to adjust their planting strategies accordingly.
- Agricultural Investment Trends: Major agricultural companies like Archer-Daniels-Midland and Cargill have invested in pulses since 2020, indicating a surge in demand for pea protein and driving the development of related supply chains.
- Nutritionists' Warnings: Despite the ongoing protein craze, nutritionists point out that the average American's protein intake exceeds recommended levels, emphasizing that exaggerated marketing may mislead consumers about the essence of healthy eating.
See More
Republican Lawmakers Propose Year-Round Sales of Higher-Ethanol Gasoline
- Legislative Proposal: A group of Republican lawmakers is set to introduce legislation allowing year-round sales of gasoline containing 15% ethanol, aimed at supporting the agriculture sector and benefiting corn growers, despite historical opposition from the oil industry.
- Biofuel Blending Exemptions: The proposal would limit exemptions from biofuel blending mandates to refineries with a total refining capacity of no more than 75,000 barrels per day, and allow exemptions for refineries at risk of closure, thereby alleviating economic pressures on smaller refiners.
- Industry Opposition: Despite years of advocacy from agricultural groups for such legislation, previous attempts have consistently failed due to the financial burdens that biofuel blending imposes on refiners, highlighting the tension between industry interests.
- Market Impact: Should the legislation succeed, it would provide permanent access to E15 gasoline sales, potentially reshaping the U.S. fuel market, promoting renewable energy use, and driving growth for related companies.
See More
