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Archer-Daniels-Midland Stock Dips After Q3 Preliminary Results: Earnings Miss, Guidance Cut Amid Restatements
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Archer-Daniels-Midland Stock Dips After Q3 Preliminary Results: Earnings Miss, Guidance Cut Amid Restatements
Nov 5, 2024 7:00 AM

Archer-Daniels-Midland Company ( ADM ) shares are trading lower on Tuesday.

Yesterday, the company reported third-quarter preliminary adjusted earnings per share of $1.09, compared with street view of $1.25.

The company will restate previously filed fiscal year 2023 Form 10-K and subsequent Forms 10-Q. The company said it has decided to postpone the webcast originally scheduled for November 5 at 9 a.m. Central Time.

The restated filings will include corrections for newly identified errors related to intersegment sales, will reflect the previously-corrected errors, and will provide disclosures applicable to restated segment information.

“Our third quarter operating results were mixed in a challenging quarter for the business,” said Chair of the Board and CEO Juan Luciano.

Archer-Daniels-Midland ( ADM ) said net earnings are expected to be $18 million, with adjusted net earnings forecasted at $530 million. The company also anticipates a $461 million non-cash charge against GAAP earnings for the third quarter related to its Wilmar equity investment.

“We are taking the necessary actions to improve performance and drive continued value creation,” Luciano added.

Also Read: Boeing Workers End Seven-Week Strike By Accepting New Contract With Major Pay Increases

Ag Services and Oilseeds (AS&O) segment operating profit was $480 million during the third quarter of 2024, down 43% compared to the prior-year quarter. Carbohydrate Solutions segment operating profit was $452 million for the third quarter of 2024, down 3% compared to the prior year period. Nutrition segment operating profit was $105 million for the third quarter of 2024, down 19% compared to the prior year period.

“While Carbohydrate Solutions achieved strong results, our Ag Services and Oilseeds and Nutrition businesses delivered results below expectations, impacted by softer than expected market conditions and the pace of our planned improvement efforts,” added Luciano.

Outlook: The company has lowered its 2024 adjusted EPS guidance to a range of $4.50 – $5.00, down from the previous range of $5.25 – $6.25, and below the $5.23 analyst estimate.

The company’s revised outlook reflects trends in ADM’s performance to date, legislative and regulatory policy uncertainties, and ongoing headwinds from slower market demand and internal operational challenges.

Price Action: ADM shares are trading lower by 9.3% to $50.16 at last check Tuesday.

Read Next:

Palantir’s AI Gamble Pays Off As Customer Revenue From Single Customer Jumps 12x In Under 8 Months — Alex Karp Quips: ‘We Should Just Go Home’

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