Earnings preview: ADM revenue to rise as commodity prices fall?

Posted Feb 2nd 2009 3:15PM by Trey Thoelcke
Filed under: Earnings Reports, Forecasts, Archer-Daniels-Midland (ADM)

Archer Daniels Midland Co. (NYSE: ADM) is scheduled to discuss fiscal second-quarter 2009 results tomorrow, February 3, in a conference call at 9:00 AM ET. To listen in to the call, dial 800-561-2601 or 617-614-3518; the access code is 81365958. Or catch the live webcast on the company's website.

For the quarter that saw lower commodities prices, analysts polled by Thomson Reuters expect the ~~Atlanta-based~~ company to report earnings of $0.68 per share, down from $0.75 per share in the same period of the previous year. Revenue for the quarter is expected to have risen 2.9% from last year to $17.0 billion. ADM's earnings have topped estimates in the most recent quarters, more than doubling the EPS forecast in its record first quarter.

For the full year, analysts so far forecast earnings of $3.40 per share and revenue of $72.9 billion, compared to $2.84 per share on $69.8 billion in fiscal 2008.

Analysts, on average, expect ADM's long-term EPS growth to be 15.0%, which is better than that of the S&P 500 average. The consensus recommendation has shifted from hold to buy ADM in the past quarter. The share price has risen about 30% in the past three months, but it is about 42% lower it was than a year ago. ADM has had a run of 77 years of uninterrupted quarterly dividends.

See BloggingStocks' ADM coverage for more information about this agricultural commodities giant.

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Tags: ADM, Archer Daniels Midland, commodities, dividends, earnings, inthenews