ANDE Earnings Prediction
The chart below shows how ANDE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ANDE sees a -1.24% change in stock price 10 days leading up to the earnings, and a +2.01% change 10 days following the report. On the earnings day itself, the stock moves by -0.24%. This data can give you a slight idea of what to expect for the next quarter's release.
ANDE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.62B
-27.91%
-6.23%
Gross Margin
6.76%
55.76%
7.81%
Operating Margin
2.16%
151.16%
2.86%
Net Margin
1.96%
133.33%
4.26%
EPS
0.80
185.71%
-23.81%
No Data Available
ANDE Earnings Analysis
Andersons Inc/The Corporation (ANDE.O) Earnings Conference Call
Positive
Record Adjusted EBITDA Growth: 1. Record Adjusted EBITDA: The company achieved a record adjusted EBITDA of $97 million in Q3 2024, up from $70 million in Q3 2023, reflecting strong operational performance across all segments.
Net Income Surge: 2. Significant Net Income Growth: Net income attributable to The Andersons increased to $27 million, or $0.80 per diluted share, compared to $10 million, or $0.28 per diluted share, in the same quarter last year.
Cash Flow Improvement: 3. Strong Cash Flow Generation: The company generated cash flows from operations before changes in working capital of $86 million, an increase of over $36 million from the previous year, demonstrating robust cash flow capabilities.
Trade Segment Income Surge: 4. Improved Trade Segment Performance: The Trade segment reported pre-tax income of $26 million, significantly up from $5 million in Q3 2023, driven by improved elevation margins and increased farmer engagement.
Strategic Capital Investments: 5. Successful Capital Investments: The company announced a $70 million investment in the Port of Houston and an $85 million acquisition of Skyland Grain, expected to enhance operational efficiency and contribute an average of $30 million to $40 million in EBITDA annually.
Negative
Revenue Decline Analysis: 1. Declining Revenues: The company reported a decline in revenues due to lower commodity prices, despite a gross profit improvement of 12%.
Nutrient Business Losses: 2. Nutrient & Industrial Losses: The Nutrient and Industrial business reported a pre-tax loss of $6 million, although this was an improvement from a loss of $8 million in 2023.
Ethanol EBITDA Decline: 3. Ethanol EBITDA Decrease: The Renewables segment's EBITDA decreased to $65 million in Q3 2024 from $69 million in the same quarter last year, despite record production levels.
EBITDA Target Delay: 4. Delayed EBITDA Target: The company has pushed back its target for a $475 million run rate EBITDA from 2025 to the end of 2026 due to slower-than-expected developments in the renewable diesel industry and changes in market conditions.
Nutrient Product Margin Decline: 5. Lower Margins in Nutrient Products: Margins in the base nutrients of the Nutrient & Industrial business have reset to more normalized levels, failing to replicate the outsized margin opportunities seen in previous years.
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ANDE Earning Call Sentiment
The Andersons, Inc. (ANDE) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
ANDE.O
-2.05%Positive
The earnings call indicates strong financial performance with record EBITDA, improved net income, and strong cash flows. Despite a decline in revenues due to lower commodity prices, the company's operational efficiency and ethanol margins have improved. The Q&A reveals optimism in ethanol demand and strategic investments, although some management responses were unclear. The market cap suggests moderate volatility. Overall, the combination of strong financials, optimistic guidance, and strategic focus on growth initiatives outweighs the concerns, leading to a positive sentiment and expected stock price increase (2% to 8%).