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Does The Street Have Archer Daniels Midland Figured Out?

By Seth Jayson - Updated Apr 7, 2017 at 12:09PM

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Checking expectations

Archer Daniels Midland (NYSE: ADM) is expected to report Q1 earnings on Oct. 30. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Archer Daniels Midland's revenues will shrink -0.3% and EPS will decrease -29.0%.

The average estimate for revenue is $21.83 billion. On the bottom line, the average EPS estimate is $0.49.

Revenue details
Last quarter, Archer Daniels Midland reported revenue of $22.68 billion. 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
Last quarter, non-GAAP EPS came in at $0.38. 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.

Recent performance
For the preceding 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

The full year's average estimate for revenue is $92.64 billion. The average EPS estimate is $2.40.

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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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. The Motley Fool owns shares of Archer Daniels Midland Company. 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.

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Stocks Mentioned

Archer-Daniels-Midland Company Stock Quote
Archer-Daniels-Midland Company
ADM
$86.60 (2.92%) $2.46

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