Analysts Predict Decline in Archer Daniels Midland Earnings
Wall Street experts anticipate that Archer Daniels Midland (ADM) will report quarterly earnings of $0.69 per share in its forthcoming financial statement, marking a significant year-over-year decrease of 52.7%. Revenue projections stand at $20.69 billion, reflecting a 5.3% decline compared to the same quarter last year. In the last month, the consensus EPS estimate has been revised downward by 2.6%, indicating that analysts have adjusted their expectations after reassessing their earlier predictions.
The Importance of Earnings Estimate Revisions
Prior to a company’s earnings announcement, it is essential to consider the changes in earnings estimates. These adjustments can play a critical role in forecasting how investors might respond to the stock. Numerous studies have shown a strong correlation between the trends in earnings estimate revisions and the short-term performance of a stock price. While many investors focus on consensus estimates for earnings and revenue to gauge a company’s quarterly performance, delving into analysts’ forecasts for key metrics can provide deeper insights.
Projected Revenue Metrics for ADM
According to analyst projections, ‘Revenues- Other Business’ are expected to reach $109.00 million. For ‘Revenues- Carbohydrate Solutions,’ analysts estimate a total of $2.70 billion, representing a modest increase of 0.5% from the previous year. The forecast for ‘Revenues- Ag Services and Oilseeds’ stands at $16.07 billion, which indicates a decline of 6.7% year-over-year. Additionally, revenues from external customers in ‘Ag Services and Oilseeds- Crushing’ are projected to hit $3.18 billion, showing a year-over-year decrease of 4.3%.
Further Revenue Insights
Analysts also predict that ‘Revenues from external customers- Ag Services and Oilseeds- Refined Products and Other’ will amount to $2.36 billion, reflecting a substantial year-over-year drop of 12.4%. The consensus estimate for ‘Revenues from external customers- Carbohydrate Solutions- Starches and Sweeteners’ is set at $2.13 billion, which indicates a slight decline of 1.1% from the previous year. In contrast, the estimate for ‘Revenues from external customers- Nutrition- Human Nutrition’ is projected at $984.57 million, signifying a notable increase of 12.9% compared to the same quarter last year.
Comprehensive Analyst Revenue Estimates
The collective insights from analysts suggest that ‘Revenues from external customers- Carbohydrate Solutions- Vantage Corn Processors’ will likely reach $537.11 million, indicating a year-over-year growth of 1.9%. The estimated ‘Revenues- Nutrition’ stands at $1.85 billion, reflecting a 0.8% rise year-over-year. Analysts foresee that ‘Revenues from external customers- Nutrition- Animal Nutrition’ will total $866.70 million, presenting a decline of 10.1% from the previous year. Furthermore, it is believed that ‘Revenues from external customers- Ag Services and Oilseeds- Ag Services’ will reach $10.80 billion, which suggests a 3.6% decrease year-over-year. The analysts’ average predictions estimate ‘Processed volumes – Oilseeds’ at 9,152.33 Kmt, down from the previous year’s figure of 9,387 Kmt.
Recent Stock Performance and Outlook
In the last month, shares of ADM have shown a return of -0.5%, slightly better than the Zacks S&P 500 composite’s decline of -0.7%. With a Zacks Rank of #4 (Sell), ADM is expected to underperform the broader market in the upcoming period.
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