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.
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 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.
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.
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.
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.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Archer Daniels Midland. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Archer Daniels Midland to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
3 Top Corn Stocks to Consider Buying Now
Corn is America's top crop. That creates big market opportunities for Ingredion, Green Plains, and Archer Daniels Midland.
3 Dividend Stocks With Better Yields Than Johnson & Johnson
These stocks would serve your income portfolio better than Johnson & Johnson today.
If You Like Dividends, You Should Love These 3 Stocks
Archer Daniels Midland, Scotts Miracle-Gro, and Canadian National Railway are three income stocks investors should consider.