Archer-Daniels-Midland (NYSE:ADM) Releases Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Archer-Daniels-Midland (NYSE:ADM) posted its quarterly earnings data on Tuesday. The company reported $1.14 earnings per share for the quarter, beating the consensus estimate of $1.07 by $0.07, Zacks reports. The business had revenue of $21.50 billion during the quarter, compared to the consensus estimate of $22.77 billion. Archer-Daniels-Midland had a return on equity of 10.96% and a net margin of 2.07%. The company’s revenue was down 6.4% compared to the same quarter last year. During the same period in the prior year, the company earned $1.36 earnings per share. Archer-Daniels-Midland updated its FY 2025 guidance to 4.000-4.750 EPS and its FY25 guidance to $4.00-4.75 EPS.

Archer-Daniels-Midland Stock Down 3.6 %

Shares of ADM traded down $1.70 during midday trading on Wednesday, reaching $45.79. 285,958 shares of the stock were exchanged, compared to its average volume of 3,180,220. Archer-Daniels-Midland has a 12-month low of $46.38 and a 12-month high of $66.08. The firm has a 50 day simple moving average of $51.24 and a 200-day simple moving average of $55.69. The company has a quick ratio of 0.84, a current ratio of 1.40 and a debt-to-equity ratio of 0.34. The company has a market cap of $21.91 billion, a price-to-earnings ratio of 13.18 and a beta of 0.72.

Archer-Daniels-Midland Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 11th. Stockholders of record on Tuesday, February 18th will be issued a dividend of $0.51 per share. This represents a $2.04 annualized dividend and a dividend yield of 4.46%. This is an increase from Archer-Daniels-Midland’s previous quarterly dividend of $0.50. Archer-Daniels-Midland’s dividend payout ratio is currently 57.14%.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on ADM shares. Stephens decreased their price objective on Archer-Daniels-Midland from $55.00 to $52.00 in a report on Tuesday. Bank of America downgraded Archer-Daniels-Midland from a “neutral” rating to an “underperform” rating and decreased their price target for the stock from $63.00 to $54.00 in a report on Tuesday, January 14th. Citigroup increased their price target on Archer-Daniels-Midland from $51.00 to $55.00 and gave the stock a “neutral” rating in a report on Wednesday, December 4th. Barclays decreased their price target on Archer-Daniels-Midland from $56.00 to $50.00 and set an “underweight” rating for the company in a report on Tuesday, January 21st. Finally, Morgan Stanley decreased their price target on Archer-Daniels-Midland from $57.00 to $52.00 and set an “equal weight” rating for the company in a report on Tuesday, November 12th. Two analysts have rated the stock with a sell rating and seven have given a hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $56.56.

Archer-Daniels-Midland announced that its Board of Directors has approved a stock repurchase plan on Wednesday, December 11th that authorizes the company to buyback 100,000,000 shares. This buyback authorization authorizes the company to repurchase shares of its stock through open market purchases. Shares buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

Archer-Daniels-Midland Company Profile

Archer-Daniels-Midland Company engages in the procurement, transportation, storage, processing, and merchandising of agricultural commodities, ingredients, flavors, and solutions in the United States, Switzerland, the Cayman Islands, Brazil, Mexico, Canada, the United Kingdom, and internationally. It operates in three segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition.