Shares of The Andersons, Inc. (NASDAQ:ANDE) were falling today after the agricultural company posted a disappointing first-quarter earnings report. As of 12:12 p.m. EDT, the stock was down 7.1%.
The diversified agricultural company, which specializes in grain, ethanol, and plant nutrient products, said revenue declined 4% to $852 million, badly missing estimates of $918.4 million.
On the bottom line, earnings per share improved from a loss of $0.52 to an adjusted result of breakeven. However, that was well below expectations of a $0.14 per-share profit.
CEO Pat Bowe acknowledged that the results were disappointing, saying, "Three of our four businesses posted better year-over-year results. While we are not satisfied with our overall results, we continue to work hard to improve execution, sharpen our cost cuts, and position the company for profitable growth."
The company has made some recent changes like closing its retail business and selling underperforming Plant Nutrient Group assets in Florida.
Management did not give specific guidance in the earnings release, but noted that weather conditions have delayed the start of the planting season. If such unfavorable conditions continue, they could compress margins in the company's plant-nutrient business.
Still, management said, "Overall, we remain confident in our ability to deliver long-term value and growth to our shareholders." Considering that results improved in three of its four segments, the company seems to be moving in the right direction even if performance was disappointing.