Archer Daniels Midland's stock drops as earnings and revenue fall short of estimates

By Steve Gelsi

Company cites challenging market conditions but remains on track for full-year profit

Archer Daniels Midland Co.'s stock was down 6% on Tuesday after the food-production and ethanol giant reported a lower second-quarter profit and missed analyst estimates for adjusted net income and revenue.

ADM (ADM) said its second-quarter profit fell to $486 million, or 98 cents a share, from $927 million, or $1.30 a share in the year-ago quarter.

Adjusted profit of $1.03 a share fell short of the FactSet consensus estimate of $1.22 a share.

Revenue dipped to $22.25 billion from $25.19 billion and missed the analyst estimate of $23.12 billion.

The company said it faced "challenging market conditions" and that large South American crops and shifts in farmer selling behaviors impacted its second-quarter results, but it expects margin opportunities to improve.

Archer Danield Midland's stock retreated by $4.06 to $59.24 a share, its lowest point since June.

Looking ahead, Archer Daniels Midland continues to expect adjusted 2024 earnings of $5.25 a share to $6.25 a share, against the analyst estimate of $5.49 a share.

Prior to Tuesday's trading, Archer Daniels Midland's stock had fallen 12.4% in 2024, compared to a 14.5% gain by the S&P 500 SPX.

-Steve Gelsi

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07-30-24 0948ET

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