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The Andersons, Inc. (ANDE - Free Report) saw record third quarter 2023 results in Renewables. This Zacks Rank #1 (Strong Buy) is expected to keep its momentum into 2024, growing earnings by 32.2%.
The Andersons is an agribusiness company which has grown, over the last 77 years, from a single grain elevator to a diverse company with commodity merchandising (trade), renewables, and nutrient and industrial specialties.
It has 82 facilities in the trade division, 4 in renewables and 37 in nutrient and industrial along with 10 farm centers.
A Record Result for Renewables in the Third Quarter
On Nov 7, 2023, The Andersons reported its third quarter results and missed on the Zacks Consensus by $0.39. Earnings were $0.13 versus the consensus of $0.52.
However, Renewables had a record quarter with great operating performance in the ethanol plants, a strong margin environment and good results from the renewable diesel feedstock merchandising team.
It also had a solid core operating performance in its Trade segment which was offset by a currency loss in the international business.
Nutrient & Industrial, which was in the typical third quarter slow season, had year-over-year improvements in both the ag and manufacturing businesses.
The Andersons has been growing through acquisitions. In the third quarter it closed on the acquisition of ACJ International, a pet food ingredient supplier. It is also actively looking to grow its Renewables business.
The Andersons ended the third quarter with $400 million in cash and very little short-term debt due to strong cash flows and reduced commodity prices. It remains well below its long-term debt to EBITDA target of less than 2.5 times.
The company is already shareholder friendly and pays a dividend, currently yielding 1.5%.
Big Growth Expected for 2024
While The Andersons has yet to report its Q4 earnings, the focus has shifted to 2024.
The Andersons is lightly followed on the Street as it's a small cap with a market cap of $1.8 billion.
But 1 earnings estimate has been revised higher in the last 60 days for 2024. The Zacks Consensus has jumped to $3.86 from $3.40 during that time. That's 32% higher than 2023, wherein the company is expected to make $2.92.
Image Source: Zacks Investment Research
Shares Rally in 2023
Shares of The Andersons rallied big in 2023, adding 48.4% and hitting new 5-year highs. But in the last month, they have retreated off those new highs by 3.5%.
Image Source: Zacks Investment Research
It's cheap on a P/E basis with a forward P/E of just 13.6.
For investors looking for a small cap agribusiness company for 2024, The Andersons should be on your short list.
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Bull of the Day: The Andersons (ANDE)
The Andersons, Inc. (ANDE - Free Report) saw record third quarter 2023 results in Renewables. This Zacks Rank #1 (Strong Buy) is expected to keep its momentum into 2024, growing earnings by 32.2%.
The Andersons is an agribusiness company which has grown, over the last 77 years, from a single grain elevator to a diverse company with commodity merchandising (trade), renewables, and nutrient and industrial specialties.
It has 82 facilities in the trade division, 4 in renewables and 37 in nutrient and industrial along with 10 farm centers.
A Record Result for Renewables in the Third Quarter
On Nov 7, 2023, The Andersons reported its third quarter results and missed on the Zacks Consensus by $0.39. Earnings were $0.13 versus the consensus of $0.52.
However, Renewables had a record quarter with great operating performance in the ethanol plants, a strong margin environment and good results from the renewable diesel feedstock merchandising team.
It also had a solid core operating performance in its Trade segment which was offset by a currency loss in the international business.
Nutrient & Industrial, which was in the typical third quarter slow season, had year-over-year improvements in both the ag and manufacturing businesses.
The Andersons has been growing through acquisitions. In the third quarter it closed on the acquisition of ACJ International, a pet food ingredient supplier. It is also actively looking to grow its Renewables business.
The Andersons ended the third quarter with $400 million in cash and very little short-term debt due to strong cash flows and reduced commodity prices. It remains well below its long-term debt to EBITDA target of less than 2.5 times.
The company is already shareholder friendly and pays a dividend, currently yielding 1.5%.
Big Growth Expected for 2024
While The Andersons has yet to report its Q4 earnings, the focus has shifted to 2024.
The Andersons is lightly followed on the Street as it's a small cap with a market cap of $1.8 billion.
But 1 earnings estimate has been revised higher in the last 60 days for 2024. The Zacks Consensus has jumped to $3.86 from $3.40 during that time. That's 32% higher than 2023, wherein the company is expected to make $2.92.
Image Source: Zacks Investment Research
Shares Rally in 2023
Shares of The Andersons rallied big in 2023, adding 48.4% and hitting new 5-year highs. But in the last month, they have retreated off those new highs by 3.5%.
Image Source: Zacks Investment Research
It's cheap on a P/E basis with a forward P/E of just 13.6.
For investors looking for a small cap agribusiness company for 2024, The Andersons should be on your short list.