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Archer Daniels' (ADM) Q4 Earnings & Sales Lag Estimates

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Archer Daniels Midland Company (ADM - Free Report) , a leading player in the global food processing industry, released fourth-quarter 2016 results, wherein adjusted earnings of 75 cents a share lagged the Zacks Consensus Estimate of 80 cents but increased15.4% from 65 cents per share earned in the year-ago quarter.

Earnings Estimate Revision: The Zacks Consensus Estimate portrays a downtrend in the last 30 days. Moreover, Archer Daniels’ performance in the trailing four quarters (including the quarter under review) gives a negative picture, as earnings have missed estimates in three of the trailing four quarters. However, the company has an average surprise of 2.5% for the trailing four quarters.

Revenues: Archer Daniels generated net sales of $16,501 million, which inched up 0.3% year over year but missed the Zacks Consensus Estimate of $16,584 million.

Key Events: Concurrent to its earnings release, the company declared a quarterly cash dividend of 32 cents per share, which is payable on Mar 14, 2017, to shareholders with record as on Feb 21, 2017.

Recently, Archer Daniels inked a deal with Validus Holdings Ltd. to sell its Crop Risk Services (“CRS”) insurance operations. The cash deal, valued at $127.5 million, is expected to close in the first half of fiscal 2017. Under the terms of the deal, both companies also signed a marketing services agreement to collectively offer a wide range of insurance and farmer marketing products to CRS consumers.

Zacks Rank: Currently, Archer Daniels carries a Zacks Rank #3 (Sell) 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.

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

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