Archer Daniels Midland Co. (NYSE: ADM) reported first-quarter 2016 earnings Tuesday. The agribusiness giant posted adjusted diluted earnings per share (EPS) of $0.42 on revenues of $14.38 billion. In the same period a year ago, the company reported EPS of $0.81 on revenues of $17.51 billion. First-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.45 and $17.02 billion in revenues.
On a GAAP basis, EPS totaled $0.39, which excludes approximately $0.02 of last-in, first-out (LIFO) inventory credits and $0.01 of charges related to asset impairments. Adjusted EPS does include a loss of $0.08 per share related to an updated portfolio investment valuation for a joint-venture investment.
The company did not offer financial guidance in its press release, but the consensus estimates for the second quarter of 2016 call for EPS of $0.57 on revenues of $16.71 billion. For the full 2016 fiscal year, analysts expect EPS of $2.48 on revenues of $67.09 billion.
In the company’s four divisions, operating profits slipped in from $194 million in the year-ago quarter to $75 million in Ag Services, rose from $113 million to $131 million in Corn Processing and tumbled from $469 million to $260 million in Oilseeds Processing. Profits rose from $68 million to $70 million in the Wild Flavors and Specialty Ingredients division.
Chairman and CEO Juan Luciano said:
Challenging market conditions continued in the first quarter, particularly affecting Ag Services. Low U.S. export volumes and weak margins continued, and in the quarter, poor results from the global trade desk impacted results for Ag Services. Results for Corn improved compared to the first quarter one year ago, led by a strong performance in sweeteners and starches. For Oilseeds, global protein demand remained solid. However, first quarter results were impacted by weak global crush margins. … The first half of the year continues to present a challenging environment. However, we are cautiously optimistic that reduced South American soybean and corn production could bring improved soybean crush margins and merchandising opportunities in the second half of the year.
ADM’s shares closed up 0.8% Monday afternoon at $40.26 in a 52-week range of $29.86 to $53.31. Shares traded down about 2% in Tuesday’s premarket at $39.45. The consensus price target on the stock was $36.60 before the report.
Are You Ahead, or Behind on Retirement?
If you’re one of the over 4 Million Americans set to retire this year, you may want to pay attention. Many people have worked their whole lives preparing to retire without ever knowing the answer to the most important question: am I ahead, or behind on my goals?
Don’t make the same mistake. It’s an easy question to answer. A quick conversation with a financial advisor can help you unpack your savings, spending, and goals for your money. With Zoe Financial’s free matching tool, you can connect with trusted financial advisors in minutes.
Why wait? Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.