For the full year, ADM reported EPS of $3.20 on revenues of $81.2 billion, compared with EPS of $2.35 on revenues of $89.8 billion in 2013. The consensus estimates called for EPS of $3.08 on revenues of $85.26 billion.
The company raised its dividend from $0.24 per share per quarter to $0.28, which ADM estimates will return $700 million to shareholders in 2015. ADM also expects to repurchase $1.5 to $2 billion in common stock and forecasts capex for the year of $1.1 to $1.3 billion.
The company did not offer financial guidance in its press release, but the consensus estimates for the first quarter of 2015 call for EPS of $0.81 on revenues of $21.55 billion. For the full 2015 fiscal year, analysts expect EPS of $3.44 on revenues of $87.15 billion.
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As was the case in the prior two quarters, profits are rising and revenues are not. In the company’s three major segments, quarterly revenues fell in each one, with oilseeds processing down $1.14 billion, corn processing down $166 million and agricultural services down $2.14 billion.
Adjusted operating profits fell by $107 million in the oilseeds division and by $3 million in corn processing, and they rose by $234 million in ag services. The storage, transportation and marketing services benefited from a large U.S. harvest and strong demand for ADM’s services. Full-year profits in ag services rose from $380 million in 2013 to $1.09 billion in 2014.
Operationally, bioproducts (including ethanol) profits rose $83 million to $217 million year over year. For the full year, bioproducts profits rose $317 million to $697 million.
The company’s CEO said:
Looking ahead in North America and Europe, solid crush margins and export opportunities have carried into the first quarter. Market conditions in South America Oilseeds should improve with the large harvest, and we are working toward higher returns throughout 2015 in this key geography. While U.S. ethanol demand was seasonally strong, boosted by the domestic response to lower gasoline prices, high industry production has built excess inventories. Margins in this industry should remain challenged until supplies are better aligned with demand.
ADM’s shares traded down nearly 3% in Tuesday’s premarket, at $46.75 in a 52-week range of $37.92 to $53.91. The consensus price target for the shares was around $53.20 before the report.
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