Archer Daniels Midland Co. (ADM) announced its second-quarter profit, surpassing expectations, despite weaker demand in certain segments of its nutrition and flavors business. The company reported a net income of $927 million, or $1.70 per share, down from $1.24 billion, or $2.18 per share, during the same period last year.
Strong Earnings Growth
Excluding nonrecurring items, adjusted earnings per share stood at $1.89, outperforming the FactSet consensus estimate of $1.59. However, revenue fell 7.7% to $25.19 billion, missing the FactSet consensus of $25.82 billion.
Revenue Breakdown
- Ag services and oilseeds revenue dropped 7.4% to $19.84 billion.
- Carbohydrate solutions revenue declined 9.9% to $3.38 billion.
- Nutrition revenue slid 7.5% to $1.85 billion.
ADM remains optimistic and has raised its full-year earnings expectations. Unfortunately, the company did not disclose the specifics of its revised outlook in the earnings press release. Analysts have projected an EPS of $6.89 for 2023.
Despite these mixed results, ADM’s stock has shown resilience, rising by 9.5% over the past three months. In comparison, the S&P 500 has advanced by 11.9%.