Free Post Earnings Research Report: Archer-Daniels-Midland’s Adjusted Earnings Increased 9.33%

LONDON, UK / ACCESSWIRE / February 28, 2018 / Active-Investors.com has just released a free earnings report on Archer-Daniels-Midland Co. (NYSE: ADM) (“ADM”). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ADM. The Company reported its financial results on February 06, 2018, for the fourth quarter and full fiscal year ended December 31, 2017. The Company reported mixed results for Q4 FY17 – its earnings figures exceeded analysts’ expectations whereas revenue numbers fell short of the expectations. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Archer-Daniels-Midland most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=ADM

Earnings Highlights and Summary

For the fourth quarter of the fiscal year 2017, ADM’s total revenues reached $16.07 billion, reflecting a decrease of 2.61% from $16.50 billion in Q4 FY16, due to lower sales across most of its segments. The revenue numbers missed analysts’ consensus estimates of $16.35 billion.

During Q4 FY17, ADM’s cost of products sold (COGS) were $15.13 billion compared to $15.49 billion in Q4 FY16, reflecting a decrease of 2.32%. The Company’s gross profit dipped 7.12% to $939 million in the reported quarter from $1.01 billion in the year ago same quarter. The Company’s segment operating profit was $733 million for the reported quarter, 9.06% lower than the $806 million reported in Q4 FY16.

ADM’s net earnings attributable to common shareholders were $788 million for Q4 FY17, an increase of 85.85% from $424 million in Q4 FY16. The Company’s diluted earnings per common share advanced 90.41% to $1.39 in the quarter under review from $0.73 in the comparable period of last year. ADM’s reported earnings included a charge of $0.08 per share related to asset impairments and restructuring activities, and a benefit of $0.65 per share due to tax adjustments related to US tax reform. The Company’s adjusted diluted earnings per share (EPS), after adjusting for non-recurring and non-core items, increased 9.33% to $0.82 in Q4 FY17 from $0.75 in Q4 FY16. ADM’s adjusted EPS were higher than analysts’ consensus estimates of $0.70.

For the year ended December 31, 2017, ADM’s total revenues were $60.83 billion, a decline of 2.43% from $62.35 billion in FY16. The Company’s COGS fell 2.39% to $57.32 billion y-o-y, while its gross profit shrank 3.12% to $3.51 billion y-o-y in FY17. ADM’s net income attributable to common shareholders increased 24.71% to $1.6 billion in FY17 from $1.29 billion in FY16. The Company’s diluted EPS rose 29.17% to $2.79 for FY17 from $2.16 in FY16, while the Company’s diluted EPS, excluding special items, were $2.43 for FY17, up 12.50% from $2.16 in FY16.

Segment Details

During Q4 FY17, ADM’s Agricultural Services segment’s net revenues were $7.52 billion compared to $8.07 billion in Q4 FY16, reflecting a decrease of 6.81%. The segment’s operating profit was $301 million for the quarter ended December 31, 2017, compared to $245 million for the same period of last year, reflecting an increase of 22.86%. This increment was attributed to strong merchandising and handling results.

For Q4 FY17, ADM’s Corn Processing segment’s net revenues dipped 0.28% to $2.51 billion on a y-o-y basis. In the reported quarter, the segment’s operating income increased 2.35% to $261 million from $255 million in Q4 FY16, led by enhanced results of Sweeteners and Starches in North America region, and Europe, Middle-East, and Africa (EMEA) region.

During Q4 FY17, ADM’s Oilseeds Processing segment’s net revenues grew 2.71% to $5.42 billion on a y-o-y basis. In the reported quarter, the segment generated an operating income of $202 million, decreasing 15.48% from $239 million in Q4 FY16. Within the segment, Crushing and Origination results decreased due to weak crush margins, despite strong crush volumes and continued growth in demand. Besides, origination results in South America were also impacted by weak margins.

For Q4 FY17, ADM’s Wild Flavors and Specialty Ingredients segment generated net revenues of $526 million, compared to $544 million in Q4 FY16, reflecting a decrease of 3.31%. In the reported quarter, the segment’s operating income increased 47.37% to $56 million from $38 million in Q4 FY16. The segment reported double-digit operating profit growth with strong sales across all regions.

Cash Matters

ADM had cash and cash equivalents of $804 million as on December 31, 2017; 29.89% higher than $619 million as on December 31, 2016. The Company’s long-term debt, including current maturities, decreased 2.08% to $6.64 billion as on December 31, 2017, from $6.78 billion as on December 31, 2016.

During Q4 FY17, the Company’s net cash flow from operating activities was $2.21 billion, up 42.19% from $1.56 billion in Q4 FY16.

The Company spent $750 million on stock purchases in Q4 FY17 compared to $1 billion in Q4 FY16.

Outlook

For the full fiscal year 2018, ADM expects to deliver growth through its strategic initiatives of increasing capabilities, product innovations, maximizing shareholders’ value, and solid international foothold.

Stock Performance Snapshot

February 27, 2018 – At Tuesday’s closing bell, Archer-Daniels-Midland’s stock declined 1.26%, ending the trading session at $41.64.

Volume traded for the day: 4.81 million shares, which was above the 3-month average volume of 3.64 million shares.

Stock performance in the previous three-month period – up 6.39%; and year-to-date – up 3.89%

After yesterday’s close, Archer-Daniels-Midland’s market cap was at $22.84 billion.

Price to Earnings (P/E) ratio was at 19.76.

The stock has a dividend yield of 3.22%.

The stock is part of the Consumer Goods sector, categorized under the Farm Products industry.

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