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Archer Daniels Midland Company

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Archer Daniels' dismal sales surprise history has long been weighing upon its stock that has lagged the broader sector in the last three months. Evidnetly, the company has been missing sales estimates for over three years now. In fact, the company's bottom-line has also been a disappointment, as the last reported quarter marked its second straight earnings miss. The dismal performance can be largely blamed on fluctuating commodity prices, oversupply in the industry and unfavorable margins. Further,  significant  global presence exposes the company to adverse  currency translations.  Nonetheless, the company is well on track with its run-rate savings target for 2017. Also,  Archer Daniels’ focus on enhancing processing capabilities and global footprint through strategic acquisitions bodes well. However, intense competition in all segments remains a threat.  Estimates have been stable lately, ahead of its second quarter earnings release.


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