Archer-Daniels-Midland Company (ADM), headquartered in Chicago, Illinois, is engaged in procuring, transporting, storing, processing, and merchandising agricultural commodities, ingredients, flavors, and solutions. Valued at $31 billion by market cap, the company processes oilseeds, corn, wheat, cocoa, and other agricultural commodities. The leading human and animal nutrition provider is expected to announce its fiscal second-quarter earnings for 2024 on Tuesday, July 23.
Ahead of the event, analysts expect ADM to report a profit of $1.30 per share on a diluted basis, down 31.2% from $1.89 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on one other occasion. ADM’s Q1 revenue and EPS declined year over year, but the company affirmed its full-year EPS guidance.
For fiscal 2024, analysts expect ADM to report EPS of $5.56, down 20.3% from $6.98 in fiscal 2023.
ADM has significantly underperformed the broader market in 2024, with the shares down 13.2% on a YTD basis. By contrast, the S&P 500 ($SPX) has gained 16.1% this year, and the S&P 500 Cons Staples Sector SPDR (XLP) is 6.1% higher.
On Jan. 22, ADM’s shares fell more than 24% after the company announced that an accounting investigation was underway after a voluntary document request by the U.S. Securities and Exchange Commission. The company also announced that CFO Vikram Luthar was sent on administrative leave with immediate effect.
On Apr. 30, ADM reported its Q1 results. Its adjusted EPS was $1.46, beating the consensus estimate of $1.35. The company’s revenue of $21.85 billion fell short of the Wall Street estimates of $22.4 billion. ADM expects full-year EPS between $5.25 and $6.25. ADM shares closed down more than 3% on the day the results were released.
Analysts’ consensus opinion on ADM stock is cautious, with a “Hold” rating overall. Out of 12 analysts covering the stock, one advises a “Strong Buy” rating, 10 have a “Hold” rating, and one gives a “Strong Sell.” The average analyst price target for ADM is $63.36, indicating a 1.1% potential upside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
