Archer-Daniels-Midland (ADM) Reports Earnings Tomorrow: What To Expect

Agricultural supply chain giant Archer-Daniels-Midland (NYSE:ADM) will be reporting results this Tuesday morning. Here’s what to expect.

Archer-Daniels-Midland missed analysts’ revenue expectations by 2% last quarter, reporting revenues of $20.37 billion, up 2.2% year on year. It was a strong quarter for the company, with a solid beat of analysts’ gross margin estimates and an impressive beat of analysts’ adjusted operating income estimates.

Is Archer-Daniels-Midland a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Archer-Daniels-Midland’s revenue to decline 1.2% year on year to $21.24 billion, improving from the 6.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.80 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.

Looking at Archer-Daniels-Midland’s peers in the consumer staples segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Constellation Brands’s revenues decreased 9.8% year on year, beating analysts’ expectations by 2.9%, and Cal-Maine reported a revenue decline of 19.4%, falling short of estimates by 3.2%. Constellation Brands traded up 5.3% following the results while Cal-Maine was down 4.6%.

Read our full analysis of Constellation Brands’s results here and Cal-Maine’s results here.

There has been positive sentiment among investors in the consumer staples segment, with share prices up 8.7% on average over the last month. Archer-Daniels-Midland is up 13% during the same time and is heading into earnings with an average analyst price target of $57.91 (compared to the current share price of $67.91).

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