Archer-Daniels-Midland Sees Stock Decline Amid Lower Agricultural Prices
Falling prices weigh on results
As a grain processor and trader, ADM is sensitive to commodity prices, and falling prices due to an increase in supply have weighed on results. In the first quarter, revenue fell 9.3% to $21.8 billion, which was below estimates at $22.3 billion.
Not surprisingly, the decline in revenue pushed profits lower as adjusted segment operating profit fell 24% to $1.31 billion, and adjusted earnings per share (EPS) declined from $2.09 to $1.46, though that topped the analyst consensus at $1.36.
CEO's perspective
CEO Juan Luciano mentioned, "ADM's solid first-quarter results showcased our team's ability to execute our strategy with agility in the face of anticipated challenging market conditions." The company focuses on initiatives like the Green Bison joint venture for renewable diesel fuel.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.