The Andersons to Stay Lower

The Andersons, Inc. (ANDE - Analyst Report) is a diversified company operating in five different business segments ranging from buying, selling and storing grain to leasing railcars and running retail stores offering the latest home hardware needs. The company has operations in 12 U.S. states and Puerto Rico, plus rail equipment leasing interests in Canada and Mexico.

The company said certain fertilizer inventory values began to decline late in the third quarter and into the fourth quarter. What's more, ANDE expects some continued price decreases in the world fertilizer markets will lead to margin decreases and additional inventory adjustments in Q4.

Given the unpredictability in plant nutrient product valuation, the company lowered its FY08 EPS guidance to a range of $2.00 to $2.80 per diluted share, down from the previous estimate of $3.50 to $4.00 per diluted share. We rate shares of ANDE a Hold.

Read the full analyst report on ANDE