Archer Daniels faces a challenging market and weakness in its Ag Services and Oilseeds unit.
Archer-Daniels-Midland is a 'Strong Buy' due to attractive valuation, cyclical lows in ROIC, and a compelling risk/reward setup. Soybean prices are oversold and poised for a medium- to long-term recovery, supporting ADM's earnings outlook. The Company is deeply undervalued relative to consumer staples peers and offers defensive value amid macro uncertainty.
Archer-Daniels-Midland Company (NYSE:ADM ) 20th Annual Global Farm to Market Conference and Chemicals Conference Call May 14, 2025 10:15 AM ET Company Participants Monish Patolawala - Chief Financial Officer Juan Luciano - Chairman, Chief Executive Officer and President Chris Cuddy - Senior Vice President and President, Carbohydrate Solutions Conference Call Participants Andrew Strelzik - BMO Capital Markets Andrew Strelzik Alright. We are thrilled to have ADM with us today to discuss this strategy to manage through the commodity cycle, simplify its business and pursue strategic growth opportunities to build its earnings potential over time.
Archer-Daniels-Midland's FQ1 earnings report showed weak performance, reflecting ongoing earnings and profit pressure. I expect cost issues, competition, and biofuel uncertainties to keep pressuring its profitability metrics. Despite these issues, I don't see a clear margin of safety in terms of its valuation multiples.
Archer Daniels reports lower revenues year over year in first-quarter 2025 owing to a decline in sales across its segments.
Archer-Daniels-Midland Company (NYSE:ADM ) Q1 2025 Earnings Conference Call May 6, 2025 10:00 AM ET Company Participants Megan Britt - Vice President, Investor Relations Juan Luciano - Chair of the Board, and Chief Executive Officer Monish Patolawala - Executive Vice President and Chief Financial Officer Conference Call Participants Tom Palmer - Citi Andrew Strelzik - BMO Heather Jones - Heather Jones Research Rahi Parikh - Barclays Pooran Sharma - Stephens Steven Haynes - Morgan Stanley Tami Zakaria - JPMorgan Salvator Tiano - Bank of America Manav Gupta - UBS Operator Good morning, and welcome to the ADM First Quarter 2025 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded.
The May collection of Dividend Kings grew to 55, with Automatic Data Processing and RLI Corporation joining, despite two companies dropping off for not increasing dividends. Six top-yield Dividend Kings, including Altria and Canadian Utilities, are now fairly priced, with annual dividends from $1K investments exceeding their single-share prices. Analysts predict net gains of 14.7% to 56.86% for the top ten Dividend Kings by yield for the coming year, based on target prices. Among the 55 Dividend Kings, 16 show negative free cash flow margins, making them cash-poor and unsafe for investment.
Trade Deficit Comes in Record High for March.
The headline numbers for ADM (ADM) give insight into how the company performed in the quarter ended March 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Archer Daniels Midland (ADM) came out with quarterly earnings of $0.70 per share, beating the Zacks Consensus Estimate of $0.69 per share. This compares to earnings of $1.46 per share a year ago.
ADM share price is heavily influenced by soybean price. While global soybean prices have been on a clear falling trend due to oversupply, a more balanced picture starts to emerge. Growth in ADM share value attractive as soon as soybean prices stabilize.
ADM's first-quarter 2025 results are likely to reflect the impacts of tough market conditions and higher costs. A soft Ag Services & Oilseeds segment is also a concern.