Archer Daniels Midland (ADM) Misses Q4 EPS by 7c
Archer Daniels Midland (NYSE: ADM) reported Q4 EPS of $1.36, worse than the analyst estimate of $1.43. Revenue for the quarter came in at $22.98 billion versus the consensus estimate of $23.64 billion.
GUIDANCE:
Archer Daniels Midland sees FY2024 EPS of $5.25-$6.25, versus the consensus of $5.87.
- The Company provided guidance for the full year 2024. ADM expects adjusted earnings per share in the range of $5.25 to $6.25 per share2, down 18% at the midpoint compared to 2023, reflecting moderating margin conditions and higher costs offsetting improved volumes.
- In AS&O, global grain and oilseed supply is expected to increase as anticipated improvements in weather would support larger production levels in key South American countries. Assuming commodity prices ease from recent highs and trade flows adjust to the dislocations created over the past two years, the Company anticipates global soybean crush margin will decline in 2024, likely moving into a range of $35/Metric Ton (MT) to $60/MT. From the demand side, we continue to expect vegetable oil demand growth from renewable diesel and low single digit soybean meal demand growth to support structural margin improvement.
- In Carbohydrate Solutions, we anticipate strong volumes and lower energy costs to support margin expansion in starches and sweeteners, partially offset by lower milling margins and ethanol margins, leading to slightly lower operating income versus 2023.
- In Nutrition, we expect mid single digit revenue growth and operating income to be higher versus 2023.
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