Archer Daniels Easily Tops Earnings View

Archer Daniels Midland (ADM 30.52) reported fiscal first quarter earnings that easily topped the consensus estimate, but revenues were down sharply from the prior year and profit was cut in half from last year's record quarter.

Archer Daniels reported fiscal first quarter earnings of $0.77 per share, $0.20 better than the First Call consensus of $0.57.  Net earnings of $496 million were down 53% from the same period last year.

Revenues fell 29.5% year-over-year to $14.92 billion, well short of the $17.92 billion consensus.  The company said that the dip in revenue was primarily due to lower average selling prices and, to a lesser extent, the impact of foreign exchange.  Archer Daniels said there were "no material changes in overall sales quantities."

By segment, profit decreased in Oilseeds Processing due to lower margins and production and fell in Agricultural Services due to reduced demand and less volatile commodity markets.  Profit improved in Corn Processing on lower net corn and manufacturing costs.

Looking ahead, CEO Patricia Woertz said the company "see(s) demand improving in some key markets."