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) Posts Loss in Q1, Quits Retail Business
Read MoreHide Full Article
The Andersons, Inc. (ANDE - Free Report) reported a loss of 6 cents per share in first-quarter 2018, narrower than a loss of 11 cents per share posted in the year-ago quarter. Notably, the loss in the reported quarter resulted from unallocated corporate expenses.
The loss incurred in the quarter was in contrast with the Zacks Consensus Estimate for the quarter, which was pegged at earnings of 8 cents per share.
Operational Update
Revenues in the reported quarter fell around 25% year over year to $636 million. The decline was due to the adoption of new revenue recognition rules that changed the treatment of a significant amount of Grain Group's sales transactions.
The Andersons, Inc. Price, Consensus and EPS Surprise
Cost of sales fell 26% to $572 million from $776 million posted in the prior-year quarter. Gross profit dropped 16.7% year over year to $63.7 million. However, gross margin expanded 100 basis points to 10% in the quarter.
Operating, administrative and general expenses were down 21% year over year to $64.3 million. Andersons reported an operating loss of $0.6 million in the first quarter compared to a loss of $5.1 million recorded in the year-earlier quarter.
Segment Performance
In January 2017, Andersons announced its decision to close all retail operations. As of Mar 31, 2018, the Retail Group has closed all stores and completed its liquidation efforts. Thus, the company will report results in four business segments from now.
The Grain Group: Revenues plummeted 42% year over year to $277 million from $479 million generated in the year-earlier quarter. The segment reported an operating loss of $0.03 million compared with a loss of $5 million posted in the comparable quarter last year.
The Ethanol Group: Revenues jumped 12% year over year to $173 million. The segment reported an operating profit of $1.8 million, a 7% increase year over year from $1.7 million recorded in the year-ago quarter.
The Plant Nutrient Group: The segment reported revenues of $136 million, down around 7.5% year over year. It reported an operating profit of $1.1 million which was significantly down from $6.7 million recorded in first-quarter 2017.
The Rail Group: Revenues at this segment went up 25% year over year to $50.4 million. Operating income plunged 35% to $4 million from $6 million recorded in the prior-year quarter.
Financial Performance
Andersons reported cash and cash equivalents of $31.5 million at the end of the first quarter, up from $29.6 million reported at the end of the prior-year quarter. Its long-term debt was $453 million as of Mar 31, 2018, compared with $422 million as of Mar 31, 2017.
Andersons anticipates that its Plant Nutrient Group will deliver a strong performance in second-quarter 2018, driven by improved volume and margin in the lawn business. However, the impact of ongoing weather challenges will affect the specialty nutrients business.
Further, Andersons’ Ethanol Group began construction of a world class bio-refinery in Kansas, in partnership with ICM, Inc. The company expects the facility to be fully operational by the end of 2019.
Share Price Performance
In the past year, Andersons has outperformed its industry with respect to price performance. The stock has gained around 4.5%, while the industry has lost around 6.6% during the same time frame.
Zacks Rank & Key Picks
Andersons currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the same sector include KapStone Paper and Packaging Corporation , Domtar Corporation and Celanese Corporation (CE - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KapStone Paper has a long-term earnings growth rate of 14%. The stock has appreciated 65% in a year’s time.
Domtar has a long-term earnings growth rate of 5%. The company’s shares have been up 20% during the past year.
Celanese has a long-term earnings growth rate of 9%. Its shares have rallied 25% in the past year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Andersons (ANDE) Posts Loss in Q1, Quits Retail Business
The Andersons, Inc. (ANDE - Free Report) reported a loss of 6 cents per share in first-quarter 2018, narrower than a loss of 11 cents per share posted in the year-ago quarter. Notably, the loss in the reported quarter resulted from unallocated corporate expenses.
The loss incurred in the quarter was in contrast with the Zacks Consensus Estimate for the quarter, which was pegged at earnings of 8 cents per share.
Operational Update
Revenues in the reported quarter fell around 25% year over year to $636 million. The decline was due to the adoption of new revenue recognition rules that changed the treatment of a significant amount of Grain Group's sales transactions.
The Andersons, Inc. Price, Consensus and EPS Surprise
The Andersons, Inc. Price, Consensus and EPS Surprise | The Andersons, Inc. Quote
Cost of sales fell 26% to $572 million from $776 million posted in the prior-year quarter. Gross profit dropped 16.7% year over year to $63.7 million. However, gross margin expanded 100 basis points to 10% in the quarter.
Operating, administrative and general expenses were down 21% year over year to $64.3 million. Andersons reported an operating loss of $0.6 million in the first quarter compared to a loss of $5.1 million recorded in the year-earlier quarter.
Segment Performance
In January 2017, Andersons announced its decision to close all retail operations. As of Mar 31, 2018, the Retail Group has closed all stores and completed its liquidation efforts. Thus, the company will report results in four business segments from now.
The Grain Group: Revenues plummeted 42% year over year to $277 million from $479 million generated in the year-earlier quarter. The segment reported an operating loss of $0.03 million compared with a loss of $5 million posted in the comparable quarter last year.
The Ethanol Group: Revenues jumped 12% year over year to $173 million. The segment reported an operating profit of $1.8 million, a 7% increase year over year from $1.7 million recorded in the year-ago quarter.
The Plant Nutrient Group: The segment reported revenues of $136 million, down around 7.5% year over year. It reported an operating profit of $1.1 million which was significantly down from $6.7 million recorded in first-quarter 2017.
The Rail Group: Revenues at this segment went up 25% year over year to $50.4 million. Operating income plunged 35% to $4 million from $6 million recorded in the prior-year quarter.
Financial Performance
Andersons reported cash and cash equivalents of $31.5 million at the end of the first quarter, up from $29.6 million reported at the end of the prior-year quarter. Its long-term debt was $453 million as of Mar 31, 2018, compared with $422 million as of Mar 31, 2017.
Andersons anticipates that its Plant Nutrient Group will deliver a strong performance in second-quarter 2018, driven by improved volume and margin in the lawn business. However, the impact of ongoing weather challenges will affect the specialty nutrients business.
Further, Andersons’ Ethanol Group began construction of a world class bio-refinery in Kansas, in partnership with ICM, Inc. The company expects the facility to be fully operational by the end of 2019.
Share Price Performance
In the past year, Andersons has outperformed its industry with respect to price performance. The stock has gained around 4.5%, while the industry has lost around 6.6% during the same time frame.
Zacks Rank & Key Picks
Andersons currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the same sector include KapStone Paper and Packaging Corporation , Domtar Corporation and Celanese Corporation (CE - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
KapStone Paper has a long-term earnings growth rate of 14%. The stock has appreciated 65% in a year’s time.
Domtar has a long-term earnings growth rate of 5%. The company’s shares have been up 20% during the past year.
Celanese has a long-term earnings growth rate of 9%. Its shares have rallied 25% in the past year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>