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Can Archer Daniels (ADM) Pull a Surprise in Q3 Earnings?
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Archer-Daniels-Midland Company (ADM - Free Report) , one of the world’s leading food processing companies, is slated to report third-quarter 2016 results on Nov 1, before the market opens. The question lingering in investors’ minds now is, whether the company will be able to break its negative earnings surprise trend in the quarter to be reported. Its past performance reveals that it underperformed the Zacks Consensus Estimate by an average of 7.7% in the trailing four quarters. Let’s see how things are shaping up for this announcement.
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. Archer Daniels has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at 47 cents. The company carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, its ESP of 0.00% makes surprise prediction difficult. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Factors Influencing this Quarter
Archer Daniels remains focused on enhancing its processing capabilities and global footprint through strategic acquisitions and divestitures. Further, the company's shift from investments in domestic to international projects is likely to fuel growth. Also, Archer Daniels' solid capital allocation and financials appear promising, and provide it with the flexibility to invest in business development as well as scope to enhance shareholder value.
However, the first half of the year proved challenging for the company due to lingering adverse market conditions and weak margins across various industries. Also, its global market presence exposes the company to the risk of adverse currency movements.
We noted that the Zacks Consensus Estimate of $2.20 and $2.73 for 2016 and 2017 has decreased 8 cents and 5 cents, respectively, over the past 7 days. Moreover, the Zacks Consensus Estimate of 47 cents for third-quarter 2016 has declined 4 cents over the same time frame.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
L Brands, Inc. has an Earnings ESP of +2.22% and a Zacks Rank #3.
Dollar Tree, Inc. (DLTR - Free Report) has an Earnings ESP of +1.28% and a Zacks Rank #3.
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Can Archer Daniels (ADM) Pull a Surprise in Q3 Earnings?
Archer-Daniels-Midland Company (ADM - Free Report) , one of the world’s leading food processing companies, is slated to report third-quarter 2016 results on Nov 1, before the market opens. The question lingering in investors’ minds now is, whether the company will be able to break its negative earnings surprise trend in the quarter to be reported. Its past performance reveals that it underperformed the Zacks Consensus Estimate by an average of 7.7% in the trailing four quarters. Let’s see how things are shaping up for this announcement.
ARCHER DANIELS Price and EPS Surprise
ARCHER DANIELS Price and EPS Surprise | ARCHER DANIELS Quote
Unlikely to Beat Estimates
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. Archer Daniels has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at 47 cents. The company carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, its ESP of 0.00% makes surprise prediction difficult. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Factors Influencing this Quarter
Archer Daniels remains focused on enhancing its processing capabilities and global footprint through strategic acquisitions and divestitures. Further, the company's shift from investments in domestic to international projects is likely to fuel growth. Also, Archer Daniels' solid capital allocation and financials appear promising, and provide it with the flexibility to invest in business development as well as scope to enhance shareholder value.
However, the first half of the year proved challenging for the company due to lingering adverse market conditions and weak margins across various industries. Also, its global market presence exposes the company to the risk of adverse currency movements.
We noted that the Zacks Consensus Estimate of $2.20 and $2.73 for 2016 and 2017 has decreased 8 cents and 5 cents, respectively, over the past 7 days. Moreover, the Zacks Consensus Estimate of 47 cents for third-quarter 2016 has declined 4 cents over the same time frame.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Urban Outfitters Inc. (URBN - Free Report) has an Earnings ESP of +2.27% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
L Brands, Inc. has an Earnings ESP of +2.22% and a Zacks Rank #3.
Dollar Tree, Inc. (DLTR - Free Report) has an Earnings ESP of +1.28% and a Zacks Rank #3.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>