Archer Daniels Midland Company First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Archer Daniels Midland Company (NYSE:ADM) will unveil its latest earnings on Tuesday, November 1, 2011. Archer Daniels Midland processes feedstuffs including oilseeds, cocoa, corn, and wheat. The company also manufactures vegetable oil and protein meal, corn sweeteners, flour, ethanol, biodiesel, and other food and feed ingredients.

Archer Daniels Midland Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 69 cents per share, a rise of 27.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 77 cents. Between one and three months ago, the average estimate moved down. It has risen from 66 cents during the last month. For the year, analysts are projecting net income of $3.07 per share, a decline of 1.9% from last year.

Past Earnings Performance: Last quarter, the company missed estimates by 26 cents, coming in at profit of 58 cents per share versus a mean estimate of net income of 84 cents per share. In the third quarter of the last fiscal year, the company beat estimates by one cent.

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Wall St. Revenue Expectations: On average, analysts predict $18.93 billion in revenue this quarter, a rise of 12.7% from the year ago quarter. Analysts are forecasting total revenue of $84.31 billion for the year, a rise of 4.5% from last year’s revenue of $80.68 billion.

Analyst Ratings: Analysts are bullish on Archer Daniels Midland Company as five analysts rate it as a buy, two rate it as a sell and four rate it as a hold.

A Look Back: In the fourth quarter of the last fiscal year, profit fell 14.6% to $381 million (58 cents a share) from $446 million (70 cents a share) the year earlier, missing analyst expectations. Revenue rose 45.6% to $22.87 billion from $15.7 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 30.6%, with the biggest boost coming in the most recent quarter when revenue rose 45.6% from the year earlier quarter.

The decrease in profit in the fourth quarter of the last fiscal year broke a streak of two consecutive quarters of year-over-year profit increases. Net income rose 37.3% in the third quarter of the last fiscal year and 29.1% in the second quarter of the last fiscal year.

Competitors to Watch: Bunge Limited (NYSE:BG), MGP Ingredients, Inc. (NASDAQ:MGPI), Corn Products Intl., Inc. (NYSE:CPO), CHS Inc. (NASDAQ:CHSCP), General Mills, Inc. (NYSE:GIS), SunOpta, Inc. (NASDAQ:STKL), Gruma S.A.B. de C.V. (NYSE:GMK), TreeHouse Foods Inc. (NYSE:THS), Seaboard Corporation (AMEX:SEB), and Alexandria Mills & Bakeries Co. (AFMC).

Stock Price Performance: During September 28, 2011 to October 26, 2011, the stock price had risen $3.79 (15.1%) from $25.11 to $28.90. The stock price saw one of its best stretches over the last year between January 4, 2011 and January 19, 2011 when shares rose for 11-straight days, rising 11.7% (+$3.49) over that span. It saw one of its worst periods between May 9, 2011 and May 24, 2011 when shares fell for 12-straight days, falling 8.8% (-$2.97) over that span. Shares are down 73 cents (-2.5%) year to date.

(Source: Xignite Financials)

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