Archer Daniels Midland Company (ADM) posted first-quarter 2024 results, with the top line missing the Zacks Consensus Estimate and the bottom line beating the same. Both metrics declined year over year.Adjusted earnings of $1.46 per share in the first quarter outpaced the Zacks Consensus Estimate of $1.35. However, the figure declined 30% from earnings of $2.09 per share in the year-ago quarter. On a reported basis, Archer Daniels’ earnings were $1.42 per share, down 33% from the year-ago quarter’s $2.12.Re ...

First Quarter 2024 Earnings Conference Call April 30, 2024 Proprietary business information of ADM. Proprietary business information of ADM. Cautionary Note Regarding Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical fact included in this release, are forward-looking statements. You can identify forwa ...

Financial Data and Key Metrics - Q1 2024 adjusted EPS was $1.46, a decrease from the prior year, driven by lower pricing and execution margins in the AS&O business [10] - Adjusted segment operating profit was $1.3 billion, down 24% YoY, primarily due to declines in ag services, oilseeds, and nutrition [10] - Operating cash flow before working capital was $900 million, reflecting strong cash generation despite market headwinds [4] - Trailing fourth quarter average adjusted ROIC was 11.2%, demonstrating disciplined capital management [4] Business Line Performance Ag Services & Oilseeds (AS&O) - AS&O operating profit was $864 million, impacted by lower commodity prices and ample supplies, partially offset by improved process volumes and manufacturing costs [12] - Ag Services subsegment saw lower operating profit due to stabilized trade flows and slower farmer selling in South America [13] - Crushing subsegment operating profit was $232 million, negatively impacted by increased imports of used cooking oil and anticipation of large South American supplies [13] - Refined products and other subsegment results were $157 million, with weaker North American refining margins due to increased used cooking oil imports [14] Carbohydrate Solutions - Carbohydrate solutions segment operating profit was $248 million, driven by strong demand and volume growth in BioSolutions [14] - Starches and sweeteners margins were strong in North America, but domestic ethanol margins were pressured due to high industry production and elevated stocks [15] - Vantage corn processing subsegment saw improved margins due to strong export demand for sustainably certified ethanol [15] Nutrition - Nutrition revenues were $1.8 billion, with human nutrition subsegment revenues partially offset by lower volumes in plant-based proteins and normalizing pricing in texturants markets [15] - Nutrition segment operating profit was $84 million, with human nutrition subsegment results of $76 million, lower than the prior year due to higher fixed cost absorption at Decatur East [16] - Animal nutrition subsegment results were $8 million, higher YoY due to cost optimization efforts and lower commodity prices [17] Market Performance - South America saw improved crush margins in Q2 due to increased farmer selling and currency devaluation, while Argentina faced challenges due to economic uncertainty and strikes [27] - North America is expected to see lower crush margins in Q2 and Q3, with recovery anticipated in Q4 due to increased soybean oil demand from renewable diesel facilities [28] - Europe is expected to maintain crush margins around $40 per metric ton, while China remains spot-driven with limited visibility [44] Strategic Direction and Industry Competition - The company is focused on three priorities for 2024: managing through the cycle, nutrition recovery, and enhanced return of cash to shareholders [5] - ADM is advancing its BioSolutions platform, with nearly 10% volume growth in Q1, and has increased its regenerative agriculture acreage goal to 5 million acres by 2025 [6] - The Drive for Excellence program has generated a pipeline of 1,200 validated proposals, targeting $500 million in cost savings over the next two years [7] - The company is leveraging its improved M&A playbook to integrate recent flavor acquisitions, with better-than-expected results forecasted [8] Management Commentary on Operating Environment and Future Outlook - Management expects global grain and oilseed supplies to increase, leading to easing commodity prices and moderating soybean crush margins in 2024 [19] - The company anticipates strong demand for vegetable oil from renewable diesel facilities, despite increased imports of used cooking oil [20] - ADM remains confident in its full-year planning assumptions, with expectations for sequential improvement in nutrition demand fulfillment and recovery in the second half of the year [22] Other Key Information - The company returned $1.3 billion to shareholders via share repurchases in Q1, with an additional $1 billion planned for the remainder of the year [18] - Corporate net interest expense guidance was raised from $500 million to $525 million due to reduced expectations for Federal Reserve rate cuts in 2024 [19] - The Decatur East plant is expected to resume operations in Q4, with headwinds in specialty ingredients persisting through the year [40] Q&A Summary Question: Impact of South American crop timing on crush margins [26] - South American farmer selling has improved in Brazil due to harvest progress and currency devaluation, while Argentina faces challenges from economic uncertainty and strikes [27] - Crush margins are expected to move to the lower end of the guided range in Q2 and Q3, with recovery anticipated in Q4 as U.S. production comes online [28] Question: Carbohydrate solutions segment outlook [31] - Strong demand and margins in starches and sweeteners are expected to drive Q2 performance, with solid export demand for sustainably certified ethanol supporting VCP results [32] Question: Refined products margin pressures [35] - North American refining margins were negatively impacted by increased used cooking oil imports, while EMEA and South America saw stronger biodiesel margins [36] - Timing impacts resulted in a $72 million negative YoY impact in Q1 [37] Question: Decatur East plant restart timeline [39] - The plant is expected to resume operations in Q4, with headwinds in specialty ingredients persisting through the year [40] Question: Soy crush margin outlook [42] - North America is expected to see lower crush margins in Q2 and Q3, with recovery in Q4 driven by increased soybean oil demand from renewable diesel facilities [43] Question: Ethanol margin divergence between starches and sweeteners and VCP [47] - VCP results were supported by strong export demand for sustainably certified ethanol, while domestic ethanol margins were pressured by high industry production [48] Question: Nutrition business restructuring [51] - The company is focusing on portfolio optimization and simplification, with a shift toward higher-margin specialty products in animal nutrition [52] - Sequential improvement in nutrition is expected, with headwinds from raw material price corrections and plant-based protein demand shifts [53] Question: Volume trends in nutrition [59] - Volumes held up well across most segments, except for specialty ingredients, which were impacted by the Decatur East plant downtime [61] Question: Soy meal demand and cost savings initiatives [63] - Increased soybean meal demand is expected in Q4, driven by lower prices and higher inclusion rates in poultry feed [64] - The Drive for Excellence program targets $500 million in cost savings, with 1/3 of the initiatives already showing progress [67] Question: Impact of blenders tax credit transition [69] - The transition to a producers tax credit in 2025 could create price discovery challenges, with regulatory clarity needed to support industry investments [70] Question: Green Bison JV contribution [75] - The Green Bison JV is ramping up and is expected to contribute to profits in 2024, with full capacity expected soon [77] Question: Sustainability initiatives in dry mills [79] - ADM is expanding its carbon capture and sequestration efforts, with plans to increase capacity from 2 to 7 wells, supporting decarbonization goals [80] - The doubling of regenerative agriculture acreage is driven by customer demand for Scope 3 emissions reductions and voluntary market growth [82]

Lower agricultural prices hurt performance at the agricultural company.Shares of Archer-Daniels-Midland (ADM -3.25%) were heading lower today after the agricultural company missed top-line estimates in its first-quarter earnings report. It did beat profit expectations, but earnings still fell.As a result, the stock was down 3.3% as of 11:05 a.m. ET on Tuesday. Falling prices weigh on resultsAs a grain processor and trader, ADM is sensitive to commodity prices, and falling prices due to an increase in supply ...

Archer Daniels Midland (ADM) reported $21.85 billion in revenue for the quarter ended March 2024, representing a year-over-year decline of 9.2%. EPS of $1.46 for the same period compares to $2.09 a year ago.The reported revenue represents a surprise of -2.46% over the Zacks Consensus Estimate of $22.4 billion. With the consensus EPS estimate being $1.35, the EPS surprise was +8.15%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to de ...

Exhibit 99.1 ADM Reports First Quarter 2024 Results, Affirms Full-Year EPS Guidance Reported EPS of $1.42, Adjusted EPS1 of $1.46 CHICAGO, April 30, 2024—ADM (NYSE: ADM) today reported financial results for the quarter ended March 31, 2024. First Quarter 2024 Highlights • Segment operating profit of $1,311 million, adjusted segment operating profit1 of $1,317 million • Trailing four-quarter average adjusted return on invested capital (ROIC)1 of 11.2% “ADM’s solid first quarter results showcased our team’s a ...

Key PointsStock buybacks are one of the most efficient ways to boost shareholder returns. They typically mean a stock is cheap and expected to rally in the short term. Three companies announced aggressive buyback programs for the year, representing a low to high single-digit net share repurchase. Potentially cheap, these three profit-churning companies could make for great watchlist additions.5 stocks we like better than The Goldman Sachs GroupInvestors tend to focus on two things when measuring the perform ...

DeagreezYou need to learn one critical lesson well if you want to succeed on Wall Street. In any given year, stocks will be volatile. YchartsA 14% to 15% decline should be expected in any year. Not for "no reason," stocks always fall for a reason. The media will create a narrative to explain what is happening with stock prices. It's the job of the financial media to create a narrative that makes us all feel better. Think about it. There's nothing more terrifying than stocks going down without a reason. ...

In its upcoming report, Archer Daniels Midland (ADM) is predicted by Wall Street analysts to post quarterly earnings of $1.35 per share, reflecting a decline of 35.4% compared to the same period last year. Revenues are forecasted to be $22.4 billion, representing a year-over-year decrease of 7%.The consensus EPS estimate for the quarter has undergone a downward revision of 2.7% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their ...

Key PointsGlobal crop supplies reached a cyclical low recently, needing the agricultural sector to step up its production soon. Three stocks come into play as critical industry supporters, offering investors different risk and reward metrics.From high growth to low betas and high dividends, investors can serve their portfolios accordingly during this cycle. 5 stocks we like better than Bank of AmericaEvery cycle in the economy brings a different set of opportunities for investors. These are weighted as a ba ...