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Archer-Daniels-Midland Company (NYSE:ADM) reported mixed results for the second quarter, with profit beating and revenue missing, and upped its earnings forecast for the full year. Shares rose 0.5% on Tuesday morning.
Non-GAAP EPS of $1.89 beat the average analyst estimate by $0.30 and revenue of $25.19B missed by $520M. In April, the Chicago-based company forecast 2023 earnings at $6 to $7 per share, which was lower than the 2022 record of $7.85 in 2022 and below some estimates.
We continued to make progress advancing our strategic initiatives connected to decarbonization, which are helping us build additional earnings power and growth for ADM,” Chief Executive Officer Juan Luciano said in a statement.
“Based on our strong first-half results, increased confidence in second-half performance, and our team’s demonstrated ability to execute, we are raising our earnings expectations for full-year 2023.”
A record soybean crop in Brazil buoyed results, while North American exports were lower. Starches and sweeteners subsegment, including ethanol production, saw solid demand with North America delivering volumes and margins similar to the prior year. Nutrition, specialty ingredients and animal nutrition results were lower.
Shares are down 7.3% in 2023, and the stock has five Strong Buy ratings from Wall Street analysts, four Buys and seven Holds.
