Archer Daniels Midland
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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