Archer Daniels Midland
The 10-second takeaway
For the quarter ended March 31 (Q3), Archer Daniels Midland missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Revenue details
Archer Daniels Midland reported revenue of $21.16 billion. The six analysts polled by S&P Capital IQ anticipated revenue of $21.61 billion on the same basis. GAAP reported sales were 5.4% higher than the prior-year quarter's $20.08 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 $0.78. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.60 per share. GAAP EPS of $0.60 for Q3 were 30% lower than the prior-year quarter's $0.86 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 4.8%, 100 basis points worse than the prior-year quarter. Operating margin was 3.0%, 80 basis points worse than the prior-year quarter. Net margin was 1.9%, 100 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $24.24 billion. On the bottom line, the average EPS estimate is $0.71.
Next year's average estimate for revenue is $89.01 billion. The average EPS estimate is $2.46.
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 $33.58.
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