Archer-Daniels-Midland (NYSE:ADM) Posts Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Archer-Daniels-Midland (NYSE:ADM) issued its earnings results on Tuesday. The company reported $1.14 earnings per share for the quarter, topping the consensus estimate of $1.07 by $0.07, Zacks reports. Archer-Daniels-Midland had a net margin of 2.07% and a return on equity of 10.96%. Archer-Daniels-Midland updated its FY 2025 guidance to 4.000-4.750 EPS.

Archer-Daniels-Midland Price Performance

Shares of NYSE ADM traded down $1.72 during mid-day trading on Tuesday, reaching $48.30. 830,435 shares of the company traded hands, compared to its average volume of 3,006,479. The firm has a market cap of $23.11 billion, a PE ratio of 13.82 and a beta of 0.72. The company has a debt-to-equity ratio of 0.34, a current ratio of 1.40 and a quick ratio of 0.84. Archer-Daniels-Midland has a fifty-two week low of $47.46 and a fifty-two week high of $66.08. The stock has a fifty day simple moving average of $51.42 and a 200-day simple moving average of $55.91.

Archer-Daniels-Midland Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 11th. Investors of record on Tuesday, February 18th will be paid a dividend of $0.51 per share. This is a boost from Archer-Daniels-Midland’s previous quarterly dividend of $0.50. This represents a $2.04 dividend on an annualized basis and a dividend yield of 4.22%. Archer-Daniels-Midland’s payout ratio is currently 57.14%.

Archer-Daniels-Midland announced that its Board of Directors has authorized a share repurchase program on Wednesday, December 11th that authorizes the company to repurchase 100,000,000 shares. This repurchase authorization authorizes the company to repurchase shares of its stock through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its stock is undervalued.

Analyst Ratings Changes

A number of equities research analysts have commented on the company. BMO Capital Markets lowered their target price on Archer-Daniels-Midland from $55.00 to $51.00 and set a “market perform” rating on the stock in a report on Wednesday, December 4th. Barclays lowered their target price on shares of Archer-Daniels-Midland from $56.00 to $50.00 and set an “underweight” rating for the company in a research note on Tuesday, January 21st. Stephens began coverage on shares of Archer-Daniels-Midland in a research report on Wednesday, December 11th. They issued an “equal weight” rating and a $55.00 target price on the stock. Citigroup boosted their price objective on shares of Archer-Daniels-Midland from $51.00 to $55.00 and gave the company a “neutral” rating in a research note on Wednesday, December 4th. Finally, Bank of America cut Archer-Daniels-Midland from a “neutral” rating to an “underperform” rating and reduced their target price for the company from $63.00 to $54.00 in a report on Tuesday, January 14th. Two research analysts have rated the stock with a sell rating and seven have given a hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $56.89.

About Archer-Daniels-Midland

Archer-Daniels-Midland Company engages in the procurement, transportation, storage, processing, and merchandising of agricultural commodities, ingredients, flavors, and solutions in the United States, Switzerland, the Cayman Islands, Brazil, Mexico, Canada, the United Kingdom, and internationally. It operates in three segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition.