We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Archer Daniels Midland Company (ADM - Free Report) posted fourth-quarter 2023 results, wherein the top line missed the Zacks Consensus Estimate but the bottom line beat the same. Both metrics declined year over year.
Adjusted earnings of $1.63 per share in the fourth quarter outpaced the Zacks Consensus Estimate of $1.42. However, the figure declined 30% from $1.93 in the year-ago quarter. On a reported basis, Archer Daniels’ earnings were $1.06 per share, down 42% from the year-ago quarter’s $1.84.
Revenues fell 11.4% year over year to $22,978 million and missed the Zacks Consensus Estimate of $23,652 million.
Segment-wise, revenues for Ag Services & Oilseeds fell 10.7% year over year, whereas Carbohydrate Solutions’ revenues dropped 19.4% year over year. Also, Nutrition witnessed a year-over-year revenue decline of 6.7%.
Archer Daniels Midland Company Price, Consensus and EPS Surprise
Meanwhile, we projected revenues for Ag Services & Oilseeds and Carbohydrate Solution segments to decline by 12.1% and 1%, respectively. We estimated Nutrition revenues to drop 4.5%.
The gross profit decreased marginally year over year to $1,740 million but exceeded our estimate of $1,525.2 million. Meanwhile, the gross margin expanded 80 basis points to 7.6% in the quarter under review. The metric fared better than our estimate of 6.5%. SG&A expenses rose 2.5% to $919 million. We expected SG&A expenses to decrease 5.8% for the quarter under review.
Archer Daniels has reported an adjusted segmental operating profit of $1.4 billion in fourth-quarter 2023, down 16% from the year-ago quarter. On a GAAP basis, ADM’s segmental operating profit fell 23% year over year to $1.2 billion.
Segmental Operating Profit
Adjusted operating profit for Ag Services & Oilseeds fell 20% year over year to $954 million. The decline was driven by lower margins, as global grain and oilseed supplies recovered, hurting commodity price levels. Improved volumes, mainly due to record export volumes out of Brazil, and reduced costs somewhat offset the impacts of lower margins. Equity earnings from Wilmar were about 59% lower compared with the prior year.
The Carbohydrate Solutions segment’s adjusted operating profit increased 12% to $309 million. The Starches and Sweeteners sub-segment, rose $9 million, as increased pricing and lower input costs offset issues from lower volumes and co-product margins. In Vantage Corn Processing, results improved $23 million on solid export demand, and steady domestic blending aided margins and higher ethanol production.
In the Nutrition segment, the adjusted operating loss of $10 million plunged 110% from $105 million in the year-ago quarter. The Human Nutrition segment’s operating profit was negative $25 million, about $112 million lower than the year-ago period, due to lower volumes and higher manufacturing costs, stemming from operational headwinds. Animal Nutrition's operating profit of $15 million was 17% lower year over year on reduced amino acid margins and lower sub-segment volumes overall.
Other Financials
This Zacks Rank #5 (Strong Sell) player ended the quarter with cash and cash equivalents of $1.4 billion; long-term debt, including current maturities, of $8.3 billion; and shareholders’ equity of $24.1 billion. As of Dec 31, 2023, ADM provided $4.5 billion in cash for operating activities. It repurchased shares worth $2.7 billion and cash dividends of $977 million in 2023.
We note that shares of ADM have lost 15.2% in the past three months compared with the industry’s 9.2% decline.
Stocks to Consider
We highlighted some better-ranked stocks from the broader Consumer Staples space, namely Church & Dwight Co. (CHD - Free Report) , Colgate-Palmolive (CL - Free Report) and InterParfums (IPAR - Free Report) .
Church & Dwight, offering a broad range of household, personal care and specialty products, currently carries a Zacks Rank #2 (Buy). CHD has a trailing four-quarter earnings surprise of 10.1%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Church & Dwight’s current financial year’s sales and earnings suggests growth of 8.7% and 6.4%, respectively, from the year-ago numbers.
Colgate, a leading consumer goods company, currently carries a Zacks Rank of 2. CL has a trailing four-quarter earnings surprise of 4.2%, on average.
The Zacks Consensus Estimate for CL’s current financial-year sales and earnings suggests growth of 3.5% and 7.7%, respectively, from the year-ago reported figures.
Inter Parfums is engaged in the manufacturing, distribution and marketing of a wide range of fragrances and related products. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for IPAR’s current financial-year sales and earnings indicates advancements of 20.9% and 20.2%, respectively, from the prior-year figures. It has a trailing four-quarter earnings surprise of 45.7%, on average.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Archer Daniels (ADM) Q4 Earnings Beat, Revenues Dip Y/Y
Archer Daniels Midland Company (ADM - Free Report) posted fourth-quarter 2023 results, wherein the top line missed the Zacks Consensus Estimate but the bottom line beat the same. Both metrics declined year over year.
Adjusted earnings of $1.63 per share in the fourth quarter outpaced the Zacks Consensus Estimate of $1.42. However, the figure declined 30% from $1.93 in the year-ago quarter. On a reported basis, Archer Daniels’ earnings were $1.06 per share, down 42% from the year-ago quarter’s $1.84.
Revenues fell 11.4% year over year to $22,978 million and missed the Zacks Consensus Estimate of $23,652 million.
Segment-wise, revenues for Ag Services & Oilseeds fell 10.7% year over year, whereas Carbohydrate Solutions’ revenues dropped 19.4% year over year. Also, Nutrition witnessed a year-over-year revenue decline of 6.7%.
Archer Daniels Midland Company Price, Consensus and EPS Surprise
Archer Daniels Midland Company price-consensus-eps-surprise-chart | Archer Daniels Midland Company Quote
Meanwhile, we projected revenues for Ag Services & Oilseeds and Carbohydrate Solution segments to decline by 12.1% and 1%, respectively. We estimated Nutrition revenues to drop 4.5%.
The gross profit decreased marginally year over year to $1,740 million but exceeded our estimate of $1,525.2 million. Meanwhile, the gross margin expanded 80 basis points to 7.6% in the quarter under review. The metric fared better than our estimate of 6.5%. SG&A expenses rose 2.5% to $919 million. We expected SG&A expenses to decrease 5.8% for the quarter under review.
Archer Daniels has reported an adjusted segmental operating profit of $1.4 billion in fourth-quarter 2023, down 16% from the year-ago quarter. On a GAAP basis, ADM’s segmental operating profit fell 23% year over year to $1.2 billion.
Segmental Operating Profit
Adjusted operating profit for Ag Services & Oilseeds fell 20% year over year to $954 million. The decline was driven by lower margins, as global grain and oilseed supplies recovered, hurting commodity price levels. Improved volumes, mainly due to record export volumes out of Brazil, and reduced costs somewhat offset the impacts of lower margins. Equity earnings from Wilmar were about 59% lower compared with the prior year.
The Carbohydrate Solutions segment’s adjusted operating profit increased 12% to $309 million. The Starches and Sweeteners sub-segment, rose $9 million, as increased pricing and lower input costs offset issues from lower volumes and co-product margins. In Vantage Corn Processing, results improved $23 million on solid export demand, and steady domestic blending aided margins and higher ethanol production.
In the Nutrition segment, the adjusted operating loss of $10 million plunged 110% from $105 million in the year-ago quarter. The Human Nutrition segment’s operating profit was negative $25 million, about $112 million lower than the year-ago period, due to lower volumes and higher manufacturing costs, stemming from operational headwinds. Animal Nutrition's operating profit of $15 million was 17% lower year over year on reduced amino acid margins and lower sub-segment volumes overall.
Other Financials
This Zacks Rank #5 (Strong Sell) player ended the quarter with cash and cash equivalents of $1.4 billion; long-term debt, including current maturities, of $8.3 billion; and shareholders’ equity of $24.1 billion. As of Dec 31, 2023, ADM provided $4.5 billion in cash for operating activities. It repurchased shares worth $2.7 billion and cash dividends of $977 million in 2023.
We note that shares of ADM have lost 15.2% in the past three months compared with the industry’s 9.2% decline.
Stocks to Consider
We highlighted some better-ranked stocks from the broader Consumer Staples space, namely Church & Dwight Co. (CHD - Free Report) , Colgate-Palmolive (CL - Free Report) and Inter Parfums (IPAR - Free Report) .
Church & Dwight, offering a broad range of household, personal care and specialty products, currently carries a Zacks Rank #2 (Buy). CHD has a trailing four-quarter earnings surprise of 10.1%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Church & Dwight’s current financial year’s sales and earnings suggests growth of 8.7% and 6.4%, respectively, from the year-ago numbers.
Colgate, a leading consumer goods company, currently carries a Zacks Rank of 2. CL has a trailing four-quarter earnings surprise of 4.2%, on average.
The Zacks Consensus Estimate for CL’s current financial-year sales and earnings suggests growth of 3.5% and 7.7%, respectively, from the year-ago reported figures.
Inter Parfums is engaged in the manufacturing, distribution and marketing of a wide range of fragrances and related products. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for IPAR’s current financial-year sales and earnings indicates advancements of 20.9% and 20.2%, respectively, from the prior-year figures. It has a trailing four-quarter earnings surprise of 45.7%, on average.