ADM lifts FY adjusted EPS profit outlook after Q3 beat
Overview
US agriculture supply chain manager's Q3 revenue rose 10%, slightly beating analysts' expectations
Adjusted EPS for Q3 increased 92%, beating analyst expectations
Company raised full-year 2026 adjusted EPS guidance
Outlook
ADM raises 2026 adjusted EPS guidance to $5.50-$5.80 from $5.15-$5.60
Company expects Q4 operating profit improvement in all segments year-over-year
ADM lowers 2026 capital expenditure forecast to $1.2-$1.3 bln from $1.3-$1.5 bln
Result Drivers
BIOFUELS ENVIRONMENT - ADM said strong North American biofuels margins and higher domestic demand drove results
RVO POLICY & ENERGY PRICES - ADM cited finalized Renewable Volume Obligation policy and higher global energy prices as supporting biofuels margins
ETHANOL MARGINS - Robust North American ethanol margins, policy incentives, and strong exports boosted Carbohydrate Solutions segment
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Beat* | $22.34 bln | $22.19 bln (5 Analysts) |
Q3 Adjusted EPS | Beat | $1.77 | $1.60 (8 Analysts) |
Q3 EPS | $1.70 | ||
Q3 Adjusted Net Income | Beat | $858 mln | $779.73 mln (4 Analysts) |
Q3 Net Income | $821 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
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 1 "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "hold"
Wall Street's median 12-month price target for Archer-Daniels-Midland Co is $82.50, about 8.9% above its November 2 closing price of $75.77
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)