ADM Q4 revenue misses expectations, adjusted EPS beats

Overview

• Agricultural supply chain manager's Q4 revenue missed analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company announced increase in quarterly dividend, marking 53 years of growth

Outlook

• ADM expects 2026 adjusted EPS of $3.60 to $4.25

• Company projects 2026 capital expenditures of $1.3 bln to $1.5 bln

• ADM says U.S. biofuel policy clarity will impact ability to achieve higher EPS

Result Drivers

• AG SERVICES & OILSEEDS - Lower soybean exports and weaker crush margins led to a 31% decline in operating profit

• CARBOHYDRATE SOLUTIONS - Operating profit decreased 6% due to lower demand for starches and sweeteners and high corn costs in EMEA

• VANTAGE CORN PROCESSORS - Operating profit rose 187% due to strong ethanol margins

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 8 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy."

• Wall Street's median 12-month price target for Archer-Daniels-Midland Co is $57.07, about 16.2% below its February 2 closing price of $68.08

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBwb2fdyba

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.