Archer-Daniels-Midland Q1 Earnings Surpass Estimates

Archer-Daniels-Midland Co ADM reported first-quarter FY22 sales growth of 25.2% year-on-year to $23.65 billion, beating the consensus of $17.91 billion.
Revenues from Ag Services and Oilseeds rose 21.6% Y/Y, Carbohydrate Solutions increased 51.4%, and Nutrition climbed 23%.
The gross profit increased 22.5% Y/Y to $1.9 billion with a margin of 8%.
The Segment operating margin was 6.5%, and Segment operating income for the quarter rose 39.3% to $1.5 billion.
Adjusted EPS of $1.90 beat the analyst consensus of $1.40.
The company held $9.22 billion in cash and equivalents as of March 31, 2022.
"Looking forward, we expect reduced crop supplies — caused by the weak Canadian canola crop, the short South American crops, and now the disruptions in the Black Sea region — to drive continued tightness in global grain markets for the next few years," said CEO Juan Luciano.
ADM expects 2022 results to exceed 2021 performance.
Price Action: ADM shares are trading higher by 3.89% at $94.50 in premarket on the last check Tuesday.