FX.co ★ ADM Q3 Preliminary Profit Down; Cuts FY Profit Outlook

Archer-Daniels-Midland Company (ADM) has announced preliminary earnings per share (EPS) of $0.04 for the third quarter ending September 30, 2024. The adjusted EPS for the same period stands at $1.09, both figures showing a decline from the previous year. This is below the analysts' expectations, as those surveyed by Thomson Reuters anticipate the company would report EPS of $1.24 for the third quarter. It should be noted that analysts’ forecasts typically do not account for special items.

The company projects its net earnings for this quarter to amount to $18 million, with adjusted net earnings estimated at $530 million. This includes a non-cash charge of $461 million detracting from the Generally Accepted Accounting Principles (GAAP) earnings due to the Wilmar equity investment.

ADM has revised its prior guidance for full-year earnings per share, now forecasting adjusted EPS in the range of $4.50 to $5.00 for 2024. This is a decrease from the previous forecast of $5.25 to $6.25. Analysts, on the other hand, have projected annual earnings of $5.23 per share.

This revised outlook takes into account the current performance trends within the company, uncertainties in legislative and regulatory policies, as well as continuing challenges arising from sluggish market demand and internal operational obstacles.