Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at or call 800-767-3771 ext.  9339.

On Sep 6, we upgraded our recommendation on The Andersons, Inc. (ANDE - Analyst Report) to Outperform based on its impressive second-quarter 2013 performance.

Why the Upgrade?

Andersons, on Aug 6, reported revenues of $1.57 billion in the second quarter, up 19% year over year. The results were way ahead of the Zacks Consensus Estimate of $1.38 billion.

Earnings per share rose 1% year over year to $1.57 and beat the Zacks Consensus Estimate by 5 cents. The upbeat results were driven by record operating profit at Ethanol and Rail Group, and increased profit in Retail Group. Andersons delivered positive earnings surprises in two of its last four quarters with an average beat of 48.13%.

Ethanol Group generated record operating income of $10.6 million in the second quarter versus a loss of $2.1 million in the year-ago quarter. The improvement came on the back of improved ethanol margins and increased co-product income. In addition, Rail Group posted record operating income of $24.3 million in the first half of 2013.

In Sep 2013, Andersons finalized the purchase of railcar repair and cleaning provider Mile Rail, LLC. The acquisition will enhance Andersons’ current railcar repair network by expanding its geographical footprint and business mix. Furthermore, the Mile Rail acquisition is expected to increase Andersons’ railcar repair revenues by 25%.

Following the release of second quarter results, Zacks Consensus Estimates for 2013 and 2014 have gone up 3.3% and 6.7%, respectively, to $4.13 per share and $5.26 per share, respectively. With earnings estimates for both 2013 and 2014 are moving up, Andersons now retains a Zacks Rank #1 (Strong Buy).

Even though the Grain group will likely remain affected by the 2012 drought and the Turf & Specialty group by additional expenses, Andersons expects continuous focus on operational efficiency, co-product production and cost control to bode well for Ethanol Group. The Rail Group will benefit from increased financing opportunities, higher railcar lease rates, larger railcar fleet and expansion of the railcar repair business.

Other Stocks to Consider

Amira Nature Foods Ltd. (ANFI - Snapshot Report) and Pilgrim's Pride Corporation (PPC - Snapshot Report), both carrying a Zacks Rank #1 (Strong Buy), and Gruma S.A.B. de CV (GMK - Snapshot Report) with a Zacks Rank #2 (Buy), are performing well in the similar industry and are also worth considering.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%