Archer Daniels Midland (NYSE:ADM) Issues Quarterly Earnings Results

Key Points

• Archer Daniels Midland reported earnings of $0.93 per share for the quarter, falling short of analysts' expectations of $0.95 by $0.02 and showing a 4.9% decline in revenue year-over-year.
• The company also declared a quarterly dividend of $0.51 per share, which translates to an annualized yield of 3.6%.
• Analysts have mixed ratings on the stock, with two rated sell, four hold, and one buy, and a consensus price target of $50.29.

Archer Daniels Midland (NYSE:ADM - Get Free Report) issued its earnings results on Tuesday. The company reported $0.93 EPS for the quarter, topping the consensus estimate of $0.88 by $0.05, Zacks reports. Archer Daniels Midland had a return on equity of 8.71% and a net margin of 1.63%. The business had revenue of $21.17 billion during the quarter, compared to the consensus estimate of $21.56 billion. During the same quarter last year, the company earned $1.03 EPS. The firm's revenue was down 4.9% compared to the same quarter last year. Archer Daniels Midland updated its FY 2025 guidance to 4.000-4.000 EPS.

Archer Daniels Midland Trading Up 3.9%

Shares of ADM traded up $2.13 during mid-day trading on Tuesday, hitting $56.49. 2,034,272 shares of the company's stock traded hands, compared to its average volume of 3,962,038. The firm has a market capitalization of $27.14 billion, a P/E ratio of 20.24, a PEG ratio of 3.01 and a beta of 0.68. The business's 50-day moving average price is $52.62 and its 200-day moving average price is $49.39. Archer Daniels Midland has a 1 year low of $40.98 and a 1 year high of $62.61. The company has a quick ratio of 0.81, a current ratio of 1.38 and a debt-to-equity ratio of 0.34.

Archer Daniels Midland Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 11th. Stockholders of record on Wednesday, May 21st were paid a dividend of $0.51 per share. The ex-dividend date of this dividend was Wednesday, May 21st. This represents a $2.04 annualized dividend and a dividend yield of 3.6%. Archer Daniels Midland's payout ratio is 72.86%.

Analyst Upgrades and Downgrades

Several brokerages have commented on ADM. Citigroup cut their target price on Archer Daniels Midland from $51.00 to $49.00 and set a "neutral" rating for the company in a research note on Tuesday, April 15th. Bank of America downgraded Archer Daniels Midland from a "neutral" rating to an "underperform" rating and dropped their price target for the company from $47.00 to $45.00 in a research report on Thursday, May 8th. Barclays lifted their price target on Archer Daniels Midland from $48.00 to $50.00 and gave the company an "underweight" rating in a research report on Wednesday, July 2nd. Finally, UBS Group upgraded Archer Daniels Midland from a "neutral" rating to a "buy" rating and lifted their price target for the company from $55.00 to $60.00 in a research report on Monday, May 19th. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and one has assigned a buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $50.29.

Institutional Investors Weigh In On Archer Daniels Midland

A hedge fund recently raised its stake in Archer Daniels Midland stock. Woodline Partners LP increased its position in Archer Daniels Midland Company (NYSE:ADM - Free Report) by 40.8% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 40,429 shares of the company's stock after purchasing an additional 11,715 shares during the period. Woodline Partners LP's holdings in Archer Daniels Midland were worth $1,941,000 at the end of the most recent reporting period. Institutional investors own 78.28% of the company's stock.

About Archer Daniels Midland

Archer-Daniels-Midland Company engages in the procurement, transportation, storage, processing, and merchandising of agricultural commodities, ingredients, flavors, and solutions in the United States, Switzerland, the Cayman Islands, Brazil, Mexico, Canada, the United Kingdom, and internationally. It operates in three segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition.