Archer-Daniels-Midland Co.

Archer-Daniels-Midland Co. (ADM - Snapshot Report) posted record results in its fiscal first quarter. Earnings per share of $1.63 more than doubled the year-prior 68 cents and soared past the consensus estimate by astonishing 133%.

Company Description

Archer-Daniels-Midland, one of the largest agricultural processors worldwide, makes food ingredients, animal feed ingredients, renewable fuels and naturally derived alternatives to industrial chemicals. The company is headquartered in Decatur, Illinois.

Archer-Daniels-Midland explains that farmers are essential to the overall economy, which is why it works to be essential to the farming community, creating thousands of products from crops and providing hundreds of markets for farmers’ crops.

77 years of Rewarding Shareholders

The company declared a cash dividend of 13 cents per share in early November, which was paid out on December 11, 2008.

This is ADM noted that this was its 308th consecutive quarterly payment, a record of 77 years of uninterrupted dividends.

The company’s dividend yield of 1.8% is well above the industry average as ADM’s peers pay virtually no income.

A Record Quarter

Archer-Daniels-Midland posted record results in its fiscal first quarter. Earnings per share of $1.63 more than doubled the year-prior 68 cents and soared past the consensus estimate by astonishing 133%.

“This record quarter again demonstrates the ability of our people to utilize our integrated global network and financial strength to capitalize on opportunities and further affirms our business model and strategy,” said Chairman of the Board and Chief Executive Officer Patricia Woertz. “Our strong balance sheet and credit rating provide us with the flexibility to access the most cost-efficient credit markets. Our market acumen coupled with this financial strength enables us to recognize and promptly act upon opportunities when they arise.”

Rising Estimates

Analysts are bullish on ADM. Earnings forecasts for the year ending June 2009 are at $3.40 per share. Two months ago, analysts were calling for $2.46 per share.

The company’s earnings per share are expected to grow by 18% over the next 3 – 5 years, which is in line with the industry average.