Archer-Daniels-Midland Q3: Sales Miss, Bottomline Beat, Lower Ag Services Results & More

Archer-Daniels-Midland Company ADM reported Q3 FY23 sales of $21.695 billion, missing the consensus of $23.68 billion.

Adjusted EPS of $1.63 beat the analyst consensus of $1.52.

Gross profit was flat at $1.81 billion. Segment operating profit declined to $1.421 billion from $1.559 billion a year ago.

Ag Services and Oilseeds segment were lower Y/Y, as results for North American origination were lower, driven by the shift of exports to South America.

In the Carbohydrate Solutions segment, Starches and Sweeteners subsegment results, including ethanol production from wet mills, were higher year-over-year on a healthy demand environment during the quarter.

Nutrition results were significantly lower year-over-year, as specialty ingredients results were much lower year-over-year due to continued lower market demand for plant-based proteins in meat alternatives, inventory adjustments, and unplanned downtime.

The company held $1.498 billion in cash and equivalents as of the end of the quarter.

"Through targeted investments in innovation and a focus on efficiencies that align to our customers' goals, we are strengthening critical partnerships and expanding our new profit opportunities to deliver additional shareholder value," said Chair of the Board and CEO Juan Luciano.

Price Action: ADM shares are trading lower by 2.43% at $70.64 on the last check Tuesday.