Back to top

Analyst Blog

Archer Daniels Midland Company (ADM - Analyst Report), the world’s largest corn processor, is slated to report its first-quarter 2014 results on Apr 29, 2014. In the past quarter, it posted a positive surprise of 13.1%. Let us see how things are shaping up for this announcement.

Factors Affecting the Past Quarter

Archer Daniels posted better-than-expected fourth-quarter 2013 bottom-line results, primarily owing to robust operating performance at its Corn and Oilseeds Processing businesses, partly offset by lower profits at the Agricultural Services segment.

Earnings Whispers?

Our proven model does not conclusively show that Archer Daniels is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below.

Negative Zacks ESP: ESP for Archer Daniels is -3.95%. This is because the Most Accurate Estimate stands at 73 cents, while the Zacks Consensus Estimate is pegged at 76 cents.

Zacks Rank #3 (Hold): Archer Daniels’ Zacks Rank #3, when combined with a negative ESP, makes surprise prediction difficult. We caution against stocks with a Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Stocks That Warrant a Look

Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earning beat:

The Walt Disney Co. (DIS - Analyst Report) has an Earnings ESP of +1.03% and a Zacks Rank #2 (Buy).

Time Warner Inc. (TWX - Analyst Report) has an Earnings ESP of +1.14% and a Zacks Rank #3.

The Allstate Corp. (ALL - Analyst Report) has an Earnings ESP of +0.88% and a Zacks Rank #3.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

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 Zacks.com. 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
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%