Archer-Daniels-Midland Company ( ADM ) shares are trading lower after releasing second-quarter results.

The company reported second-quarter adjusted earnings per share of $1.03, missing the analyst consensus of $1.22.

Lower pricing and execution margins led to a decline, largely reflecting the impact of lower crush and origination margins. 

The company reported quarterly sales of $22.248 billion, which missed the analyst consensus estimate of $23.177 billion. This is a 11.68 percent decrease over sales of $25.190 billion the same period last year.

“ADM delivered solid results in the quarter, in spite of challenging market conditions, and we are pleased with the progress we are making against our 2024 priorities and strategic initiatives,” said Juan Luciano, Chair of the Board and CEO.

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Trailing four-quarter average return on invested capital (ROIC) was 8.9%, while trailing four-quarter average adjusted return on invested capital was 9.7%

“In Ag Services & Oilseeds, while large South American crops and shifts in farmer selling behaviors impacted results in the second quarter, we expect improved margin opportunities through the remainder of the year,” Luciano added.

Outlook: Archer-Daniels-Midland ( ADM ) affirms its previously provided FY24 adjusted EPS guidance of $5.25 – $6.25 (estimate: $5.49).

Price Action: ADM shares are trading lower by 1.68% to $62.24 at last check Tuesday.

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