Archer-Daniels-Midland Set to Report Q1 Earnings Amid Market Challenges

With a market capitalization of $22 billion, Archer-Daniels-Midland Company (ADM) is involved in the procurement, transportation, storage, processing, and merchandising of agricultural commodities, ingredients, flavors, and solutions both in the United States and abroad. Founded in 1902 and headquartered in Chicago, Illinois, ADM is scheduled to report its Q1 earnings on Tuesday, April 29.

Expected Earnings Performance

Analysts project ADM will report a profit of $0.71 per share for the upcoming quarter, reflecting a 51.4% decrease from the $1.46 per share earned in the same period last year. Notably, ADM has met or surpassed analysts’ earnings expectations in three out of the last four quarters. The previous quarter showed an EPS of $1.14, which exceeded consensus forecasts by 6.5%, largely driven by robust performance in its carbohydrate solutions segment.

Future Earnings Outlook

For the fiscal year 2025, the forecast for ADM stands at an EPS of $4.24, which is a 10.6% decrease from $4.74 in fiscal 2024. Nevertheless, analysts are optimistic for a rebound in fiscal 2026, anticipating a 13.9% year-over-year increase to $4.83 per share.

Stock Performance and Market Comparisons

Over the past year, ADM shares have dropped by 23.9%, lagging behind the S&P 500 Index, which has increased by 5.5%, and the Consumer Staples Select Sector SPDR Fund (XLP), showing an 11.4% gain during the same period.

On March 26, ADM Stock rose by more than 2%, outpacing the broader market as investors moved towards defensive sectors. This uptick is part of a larger trend favoring food producers and beverage makers, which generally perform better during unsettled market conditions.

Analyst Ratings

Despite recent gains, analysts maintain a cautious outlook on ADM Stock, assigning an overall “Hold” rating. Among 11 analysts following the Stock, recommendations include eight “Holds,” two “Moderate Sells,” and one “Strong Sell.” The mean price target of $48.80 suggests an upside potential of 5.1% from the current trading level.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. Please refer to the Barchart Disclosure Policy here.

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