Archer-Daniels-Midland (NYSE:ADM) Issues Quarterly Earnings Results

Archer-Daniels-Midland (NYSE:ADM) announced its earnings results on Tuesday. The company reported $1.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.07 by $0.07, Zacks reports. Archer-Daniels-Midland had a net margin of 2.07% and a return on equity of 10.96%. The company had revenue of $21.50 billion for the quarter, compared to analysts’ expectations of $22.77 billion. During the same quarter in the previous year, the company posted $1.36 EPS. The firm’s quarterly revenue was down 6.4% on a year-over-year basis. 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 Trading Down 3.6 %

NYSE:ADM traded down $1.70 on Wednesday, reaching $45.79. 285,958 shares of the company’s stock were exchanged, compared to its average volume of 3,180,220. 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 firm has a market capitalization of $21.91 billion, a price-to-earnings ratio of 13.18 and a beta of 0.72. The business has a fifty day moving average of $51.24 and a 200-day moving average of $55.69. Archer-Daniels-Midland has a 52-week low of $46.38 and a 52-week high of $66.08.

Archer-Daniels-Midland Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 11th. Shareholders of record on Tuesday, February 18th will be paid a dividend of $0.51 per share. This is a positive change from Archer-Daniels-Midland’s previous quarterly dividend of $0.50. This represents a $2.04 dividend on an annualized basis and a yield of 4.46%. Archer-Daniels-Midland’s dividend payout ratio is 57.14%.

Archer-Daniels-Midland announced that its Board of Directors has initiated a share buyback program on Wednesday, December 11th that allows the company to buyback 100,000,000 outstanding shares. This buyback authorization allows the company to repurchase shares of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board of directors believes its shares are undervalued.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the stock. BMO Capital Markets lowered their target price on shares of Archer-Daniels-Midland from $55.00 to $51.00 and set a “market perform” rating on the stock in a research note on Wednesday, December 4th. Stephens lowered their target price on shares of Archer-Daniels-Midland from $55.00 to $52.00 in a research note on Tuesday. Bank of America cut shares of Archer-Daniels-Midland from a “neutral” rating to an “underperform” rating and lowered their price target for the company from $63.00 to $54.00 in a research report on Tuesday, January 14th. Barclays lowered their price target on shares of Archer-Daniels-Midland from $56.00 to $50.00 and set an “underweight” rating on the stock in a research report on Tuesday, January 21st. Finally, Morgan Stanley lowered their price target on shares of Archer-Daniels-Midland from $57.00 to $52.00 and set an “equal weight” rating on the stock in a research 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’s stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $56.56.

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.