Agricultural supply chain giant Archer-Daniels-Midland (NYSE: ADM) will be announcing earnings results this Tuesday before market hours. Here’s what to look for.
Archer-Daniels-Midland beat analysts’ revenue expectations last quarter, reporting revenues of $22.68 billion, up 7.2% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a narrow beat of analysts’ gross margin 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, the market is expecting Archer-Daniels-Midland’s revenue to grow 10.7% year on year, improving from the 2.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings.
Looking at Archer-Daniels-Midland’s peers in the consumer staples segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Bunge Global delivered year-on-year revenue growth of 7.4%, beating analysts’ expectations by 5.6%, and Darling Ingredients reported revenues up 14.5%, falling short of estimates by 0.8%. Bunge Global traded down 4.1% following the results while Darling Ingredients’s stock price was unchanged.
Read our full analysis of Bunge Global’s results here and Darling Ingredients’s results here.
There has been positive sentiment among investors in the consumer staples segment, with share prices up 6.3% on average over the last month. Archer-Daniels-Midland is down 5.9% during the same time and is heading into earnings with an average analyst price target of $80.30 (compared to the current share price of $77.61).
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