Archer-Daniels-Midland’s Q3 Results Exceed Estimates

The Q3 2021 earnings and revenue of Archer-Daniels-Midland Company (ADM) have exceeded analysts’ expectations. The multinational food processing company engages in procurement, transportation, storage, processing, and selling agricultural commodities, products and ingredients.

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Adjusted earnings per share (EPS) of $0.97 came above the Street’s expectation of $0.89. The company had reported EPS of $0.89 in the same quarter last year.

Revenue climbed 34.5% year-over-year to $20.3 billion, surpassing the Street’s expectations of $17.8 billion. (See ADM stock charts on TipRanks)

Segment-wise, Ag Services and Oilseeds net sales increased 36.1% on the back of strong demand for vegetable oil and increasing production of renewable diesel. Nutrition unit’s sales jumped 17% year-over-year due to improved volume and product mix in human nutrition.

The Chairman and CEO of ADM, Juan Luciano, said, “Our team’s great ability to leverage the favorable operating environment, and the consistent implementation of our strategic plan, have put ADM on track for a strong fourth quarter culminating in a second consecutive year of record earnings per share. And as we look ahead, we remain optimistic in sustainable earnings growth in the medium term as we continue to execute our strategy, including the dynamic positioning of our business portfolio.”

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Following the release, Jefferies analyst Robert Dickerson maintained a Hold rating on RDM with a price target of $55 (16.3% downside potential).

The rest of the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 2 Buys and 2 Holds. The average ADM price target of $68 implies 3.6% upside potential from current levels.

According to TipRanks’ Smart Score system, ADM gets a 9 out of 10, which indicates that the stock is likely to outperform market averages.