Archer Daniel Midland Co.’s (NYSE:ADM) Third Quarter

Archer Daniel Midland Co.’s

Archer Daniels Midlands Co. (NYSE:ADM) is a commodity trading and food processing corporation. This Illinois based company has recently reported the third quarter earnings this Thursday. It posted its EPS for the quarter that ended this September which was $0.81 on earnings of around $18.12 billion which is better than what analysts were anticipating. Last year, during the same quarter, Archer Daniels Midlands Co. (NYSE:ADM)’s diluted earnings per share was $0.47 on an income of 21.39 billion.

These financial results for the third quarter also contrast with the Thomas Reuters agreement estimates for diluted earnings of $0.73 and $21.19 billion in earnings. The giant name in the agriculture business had the potential of overcoming the income estimates in spite of weak sales due to operating benefit development in its rural administrations and corn handling divisions. Total revenue for the third quarter was about $747 million which is about $1.14 per share.

The company decided not to offer further information regarding the revenue. The estimate revenue for the fourth and last quarter of fiscal 2014 for Archer Daniels Midlands Co. (NYSE:ADM) is calculated to be $0.94 on earnings of about $24.34 billion. Business analysts are anticipating that the EPS of the entire fiscal year of Archer Daniels Midlands Co. (NYSE:ADM) to be $3.01 on earnings of 88.16 billion. The situation was the same in the second quarter of this year, profits kept on rising but the total earning most certainly didn’t.

In the organization’s three significant fragments, incomes dropped in each and every one, corn handling down $497 million, with oilseeds transforming down $1.36 billion and horticultural administrations down $1.47 billion. Working benefits were basically leveled in the oilseeds division, almost twofold in corn handling at $356 million and up $57 million in horticultural administrations. Profits that were made by the merchandising of ethanol by Archer Daniels Midlands Co. (NYSE:ADM) rose from $113 million to $185 million.

The recurring profit that came from starches and sweeteners rose by $63 million to $171 million. These are the two things which are truly responsible for the profit that is being turned by the corporation. For Archer Daniels Midlands Co. (NYSE:ADM), the worst would happen if the ethanol prices start decreasing. According to the company’s CEO, the teams worked very hard to deliver such strong results this quarter and made critical advancements to enhance the profits and revenues.

He also said that they plan on advancing their portfolio management. From the start of the third quarter they had made an arrangement to sell their chocolate business and agreed to acquire Specialty Commodities Incorporated. He said they had finally completed their acquisition of WILD Flavors. Archer Daniels Midlands Co. (NYSE:ADM) has bought 18 million shares of its basic stock and has hopes to buy another 10 million before this year is over.

Today the stock price of Archer Daniels Midlands Co. (NYSE:ADM) is at $49.54 and the stock prices seem to be also going up which is a good sign for ADM.

 

Leave a Reply

Your email address will not be published. Required fields are marked *