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.
Andersons' (ANDE) Q4 Earnings & Revenues Miss Estimates
Read MoreHide Full Article
The Andersons Inc. (ANDE - Free Report) reported adjusted earnings of 36 cents per share in fourth-quarter 2016, up 100% from 18 cents per share reported in the prior-year quarter. Earnings, however, fell short of the Zacks Consensus Estimate of 72 cents by a wide margin of 50%.
Including one-time items, the company had posted a loss of $1.68 in the year-ago quarter. The reported quarter did not include any such adjustments.
Operational Update
Revenues in the reported quarter declined 6% year over year to $1,113 million and fell short of the Zacks Consensus Estimate of $1,346 million.
The Andersons, Inc. Price, Consensus and EPS Surprise
Cost of sales fell 7% to $1,009 million from $1,084 million in the prior-year quarter. Gross profit increased 4.6% year over year to $103.7 million. Consequently, gross margin expanded 10 basis points to 9% in the quarter.
Operating, administrative and general expenses went down 5% year over year to $84.6 million. Andersons posted adjusted income of $10 million in the quarter, compared with $5 million in the year-earlier quarter.
Segment Performance
The Grain Group: Revenues went down 4.2% year over year to $745 million from $778 million in the year-ago quarter. The segment reported an adjusted operating profit of $12.9 million as against earnings of $9.8 million in the year-ago quarter. Improved crop conditions in the Eastern Corn Belt and shedding of its underperforming Iowa assets helped drive growth.
The Ethanol Group: Revenues increased 3.4% year over year to $147.9 million. The segment reported an operating profit of $11.7 million, a 52% surge from $7.7 million in the comparable quarter in the prior year. The improvement was driven by higher margins compared to the prior year.
The Plant Nutrient Group: The segment reported revenues of $136.4 million, down 27% year over year. The segment reported an operating loss of $3.8 million compared with adjusted pretax income of $2.1 million in the year-ago quarter, hurt by$3.3 million expenses incurred while closing a cob production and storage facility in Mount Pulaski, IL, during the quarter. The group’s performance in the fourth quarter was also hampered by persistent pressure on volumes and margins; each were down compared to fourth-quarter 2015. Declining fertilizer prices as well as lower net farm income also impacted its performance.
The Rail Group: Revenues climbed 25% year over year to $45.5 million. Operating income jumped 43% to $9.7 million from $6.8 million in the prior-year quarter.
Retail Group: Revenues inched up 0.3% year over year to $38 million. The segment reported an operating loss of $6.2 million, compared with a gain of $1 million in the year-ago quarter.
Financial Performance
Andersons reported cash and cash equivalents of $62.6 million at the end of 2016, down from $63.8 million as of Dec 31, 2015. Long-term debt was $397 million as of Dec 31, 2016, compared with $436.2 million as of Dec 31, 2015.
2016 Performance
Andersons posted adjusted earnings of 41 cents per share for 2016, down 71% year over year. Earnings also missed the Zacks Consensus Estimate of 77 cents. On a reported basis, including special items, Andersons’ earnings were 41 cents per share in the year, as against a loss of 46 cents in 2015.
Revenues for full-year 2016 dipped 6.5% year over year to $3.92 billion. In addition, revenues missed the Zacks Consensus Estimate of $4.16 billion
Share Price Performance
In the last one year, Andersons has outperformed the Zacks classified Agriculture/Products sub-industry with respect to price performance. The stock gained around 44.6%, while the industry rose 14.9% over the same time frame.
Zacks Rank
Andersons currently carries a Zacks Rank #3 (Hold).
Ternium has an earnings ESP of 11.38% for the trailing four quarters. Methanex Corporation has an average earnings surprise of 28.76% forthe last four quarters, while IAMGOLD Corporation has an average earnings surprise of 49.29% for the past four quarters.
Just Released – Driverless Cars: Your Roadmap to Mega-Profits Today
In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Andersons' (ANDE) Q4 Earnings & Revenues Miss Estimates
The Andersons Inc. (ANDE - Free Report) reported adjusted earnings of 36 cents per share in fourth-quarter 2016, up 100% from 18 cents per share reported in the prior-year quarter. Earnings, however, fell short of the Zacks Consensus Estimate of 72 cents by a wide margin of 50%.
Including one-time items, the company had posted a loss of $1.68 in the year-ago quarter. The reported quarter did not include any such adjustments.
Operational Update
Revenues in the reported quarter declined 6% year over year to $1,113 million and fell short of the Zacks Consensus Estimate of $1,346 million.
The Andersons, Inc. Price, Consensus and EPS Surprise
The Andersons, Inc. Price, Consensus and EPS Surprise | The Andersons, Inc. Quote
Cost of sales fell 7% to $1,009 million from $1,084 million in the prior-year quarter. Gross profit increased 4.6% year over year to $103.7 million. Consequently, gross margin expanded 10 basis points to 9% in the quarter.
Operating, administrative and general expenses went down 5% year over year to $84.6 million. Andersons posted adjusted income of $10 million in the quarter, compared with $5 million in the year-earlier quarter.
Segment Performance
The Grain Group: Revenues went down 4.2% year over year to $745 million from $778 million in the year-ago quarter. The segment reported an adjusted operating profit of $12.9 million as against earnings of $9.8 million in the year-ago quarter. Improved crop conditions in the Eastern Corn Belt and shedding of its underperforming Iowa assets helped drive growth.
The Ethanol Group: Revenues increased 3.4% year over year to $147.9 million. The segment reported an operating profit of $11.7 million, a 52% surge from $7.7 million in the comparable quarter in the prior year. The improvement was driven by higher margins compared to the prior year.
The Plant Nutrient Group: The segment reported revenues of $136.4 million, down 27% year over year. The segment reported an operating loss of $3.8 million compared with adjusted pretax income of $2.1 million in the year-ago quarter, hurt by$3.3 million expenses incurred while closing a cob production and storage facility in Mount Pulaski, IL, during the quarter. The group’s performance in the fourth quarter was also hampered by persistent pressure on volumes and margins; each were down compared to fourth-quarter 2015. Declining fertilizer prices as well as lower net farm income also impacted its performance.
The Rail Group: Revenues climbed 25% year over year to $45.5 million. Operating income jumped 43% to $9.7 million from $6.8 million in the prior-year quarter.
Retail Group: Revenues inched up 0.3% year over year to $38 million. The segment reported an operating loss of $6.2 million, compared with a gain of $1 million in the year-ago quarter.
Financial Performance
Andersons reported cash and cash equivalents of $62.6 million at the end of 2016, down from $63.8 million as of Dec 31, 2015. Long-term debt was $397 million as of Dec 31, 2016, compared with $436.2 million as of Dec 31, 2015.
2016 Performance
Andersons posted adjusted earnings of 41 cents per share for 2016, down 71% year over year. Earnings also missed the Zacks Consensus Estimate of 77 cents. On a reported basis, including special items, Andersons’ earnings were 41 cents per share in the year, as against a loss of 46 cents in 2015.
Revenues for full-year 2016 dipped 6.5% year over year to $3.92 billion. In addition, revenues missed the Zacks Consensus Estimate of $4.16 billion
Share Price Performance
In the last one year, Andersons has outperformed the Zacks classified Agriculture/Products sub-industry with respect to price performance. The stock gained around 44.6%, while the industry rose 14.9% over the same time frame.
Zacks Rank
Andersons currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the sector include Ternium S.A. (TX - Free Report) , Methanex Corporation (MEOH - Free Report) and IAMGOLD Corporation (IAG - Free Report) . All of these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ternium has an earnings ESP of 11.38% for the trailing four quarters. Methanex Corporation has an average earnings surprise of 28.76% forthe last four quarters, while IAMGOLD Corporation has an average earnings surprise of 49.29% for the past four quarters.
Just Released – Driverless Cars: Your Roadmap to Mega-Profits Today
In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>