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Archer Daniels (ADM) Tops Q3 Earnings, Stock Jumps 2.6%

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Archer Daniels Midland Company (ADM - Free Report) , a leading player in the global food processing industry, released third-quarter 2016 results, wherein adjusted earnings of 59 cents a share came substantially ahead of the Zacks Consensus Estimate of 47 cents, while it slipped 1.7% from 60 cents earned in the year-ago quarter.

Earnings Estimate Revision: The Zacks Consensus Estimate for 2016 and 2017 has been portraying an uptrend over the past 7 days. However, Archer Daniels’ performance in the trailing four quarters (excluding the quarter under review) gives a negative picture, with an average surprise miss of 7.7%. Nonetheless, on including the quarter under review, the company’s trailing four quarter average is +2.6%.

ARCHER DANIELS Price and EPS Surprise
 

ARCHER DANIELS Price and EPS Surprise | ARCHER DANIELS Quote

Revenues: Archer Daniels generated net sales of $15,832 million, which was down 4.4% year over year. Also, revenues fell short of the Zacks Consensus Estimate of $16,052.3 million.

Key Events: During the quarter, Archer Daniels purchased Lake Bluff, IL-based Caterina Foods, which manufactures gluten-free and high-protein pastas. This comes in line with the company’s strategy to enhance its food processing capabilities as well as global footprint through strategic acquisitions and divestitures. The company also increased its stake in Wilmar to 23%.

Further, Archer Daniels implemented roughly $250 million of new run-rate savings initiatives, and anticipates exceeding its goal of achieving run-rate savings of $275 million by calendar end. Additionally, the company returned about $1.3 billion to stockholders via dividends and share repurchases during the first nine months of 2016.

Zacks Rank: Currently, Archer Daniels carries a Zacks Rank #3 (Hold) which is subject to change based on the just released earnings results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stock Movement: Archer Daniels’ shares jumped about 2.6% during pre-market trading hours following the better-than-expected earnings.

Check back later for our full write up on Archer Daniels’ earnings report!

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