Barclays Maintains an 'Equalweight' on Archer Daniels Midland (ADM); Improving Outlook for 2Q FY12
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Price: $81.75 +0.57%
Rating Summary:
12 Buy, 15 Hold, 3 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 6 | Down: 12 | New: 26
Rating Summary:
12 Buy, 15 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 12 | New: 26
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Barclays maintains an 'Equalweight' on Archer Daniels Midland (NYSE: ADM) price target raised $1 to $32.00.
Barclays analyst says, "ADM reported 1Q FY12 headline earnings of $0.68/share. After adjusting for unusual and one-time items (impacts of LIFO, losses on interest rate swaps and debt exchange costs), we estimate operating earnings of $0.58/share versus our expectations of $0.63/share and consensus of $0.66/share. The main difference from our estimate was lower oilseed and wheat and cocoa milling margins and slightly higher SG&A costs."
"$2bn Capex Reaffirmed for FY12: In 1Q12, ADM indicated that the company spent approximately $455mn in capex, with about 75% of it spent on acquisitions and expansion projects. Furthermore, management reiterated its $2bn capex guidance for FY12, specifically targeting growth outside of the U.S...Overall, BG posted a decent quarter with good volumes, however, margins were affected by a challenging global environment. Looking forward, ADM provided a more positive outlook for 2Q12. We have incorporated 1Q12 financials along with comments from the conference call into our model."
For more ratings news on Archer Daniels Midland click here and for the rating history of Archer Daniels Midland click here.
Shares of Archer Daniels Midland closed at $28.54 yesterday.
Barclays analyst says, "ADM reported 1Q FY12 headline earnings of $0.68/share. After adjusting for unusual and one-time items (impacts of LIFO, losses on interest rate swaps and debt exchange costs), we estimate operating earnings of $0.58/share versus our expectations of $0.63/share and consensus of $0.66/share. The main difference from our estimate was lower oilseed and wheat and cocoa milling margins and slightly higher SG&A costs."
"$2bn Capex Reaffirmed for FY12: In 1Q12, ADM indicated that the company spent approximately $455mn in capex, with about 75% of it spent on acquisitions and expansion projects. Furthermore, management reiterated its $2bn capex guidance for FY12, specifically targeting growth outside of the U.S...Overall, BG posted a decent quarter with good volumes, however, margins were affected by a challenging global environment. Looking forward, ADM provided a more positive outlook for 2Q12. We have incorporated 1Q12 financials along with comments from the conference call into our model."
For more ratings news on Archer Daniels Midland click here and for the rating history of Archer Daniels Midland click here.
Shares of Archer Daniels Midland closed at $28.54 yesterday.
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