Financial PerformanceADM shares underperformed the market after reporting 1Q24 EPS inline with estimates and reiterated 2024 guidance, though core segment results came in modestly below expectations.
Market OutlookAn increasingly narrow path to the upper half of the guidance range, with necessary 2H operating profit acceleration seemingly reliant on a step-up in forward crush margins substantially ahead of current forward curves.
Operational ChallengesNutrition continued to underperform expectations, particularly in Specialty Ingredients where downtime at the Decatur East plant continues to impact manufacturing costs and throughput volume.