Uncovering Potential: Archer-Daniels Midland's Earnings Preview

Archer-Daniels Midland ADM will release its quarterly earnings report on Tuesday, 2024-11-05. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Archer-Daniels Midland to report an earnings per share (EPS) of $1.42.

Anticipation surrounds Archer-Daniels Midland's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Historical Earnings Performance

The company's EPS missed by $0.25 in the last quarter, leading to a 0.78% drop in the share price on the following day.

Here's a look at Archer-Daniels Midland's past performance and the resulting price change:

Tracking Archer-Daniels Midland's Stock Performance

Shares of Archer-Daniels Midland were trading at $54.64 as of November 01. Over the last 52-week period, shares are down 23.39%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analysts' Perspectives on Archer-Daniels Midland

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Archer-Daniels Midland.

Analysts have provided Archer-Daniels Midland with 1 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $64.0, suggesting a potential 17.13% upside.

Analyzing Ratings Among Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of Ingredion, Limoneira and Arcadia Biosciences, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• As per analysts' assessments, Ingredion is favoring an Outperform trajectory, with an average 1-year price target of $141.2, suggesting a potential 158.42% upside.
• As per analysts' assessments, Limoneira is favoring an Buy trajectory, with an average 1-year price target of $26.5, suggesting a potential 51.5% downside.
• Analysts currently favor an Buy trajectory for Arcadia Biosciences, with an average 1-year price target of $6.0, suggesting a potential 89.02% downside.

Comprehensive Peer Analysis Summary

Within the peer analysis summary, vital metrics for Ingredion, Limoneira and Arcadia Biosciences are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Archer-Daniels Midland ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, it is at the bottom.

Unveiling the Story Behind Archer-Daniels Midland

Archer-Daniels Midland is a major processor of oilseeds, corn, wheat, and other agricultural commodities. The company is also one of the largest grain merchandisers through its extensive network of logistical assets to store and transport crops around the globe. ADM also runs a nutrition business that focuses on both human and animal ingredients and is a large producer of corn-based sweeteners, starches, and ethanol.

Unraveling the Financial Story of Archer-Daniels Midland

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Decline in Revenue: Over the 3 months period, Archer-Daniels Midland faced challenges, resulting in a decline of approximately -11.68% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Staples sector.

Net Margin: Archer-Daniels Midland's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 2.18%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 2.14%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Archer-Daniels Midland's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.9% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Archer-Daniels Midland's debt-to-equity ratio is below the industry average at 0.54, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Archer-Daniels Midland visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.