Upcoming AWS Coverage on Fresh Del Monte Produce Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 16, 2017 / Active Wall St. announces its post-earnings coverage on Archer-Daniels-Midland Co. (NYSE: ADM) ("ADM"). The Company disclosed its first quarter fiscal 2017 results on May 02, 2017. The US agribusiness giant missed earnings and sales expectations. Register with us now for your free membership at:

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One of Archer-Daniels-Midland's competitors within the Farm Products space, Fresh Del Monte Produce Inc. (NYSE: FDP), reported on May 02, 2017, its financial results for Q1 ended March 31, 2017. AWS will be initiating a research report on Fresh Del Monte Produce in the coming days.

Today, AWS is promoting its earnings coverage on ADM; touching on FDP. Get our free coverage by signing up to:

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Earnings Reviewed

For the three months ended March 31, 2017, ADM reported total revenue of $14.99 billion up 4% compared to revenue of $14.38 billion in Q1 2016, driven by improved sales at most segments. However, the Company's revenue numbers missed analysts' consensus of $15.29 billion.

For Q1 2017, ADM reported adjusted segment's operating profit of $678 million, up 18% compared to $573 million in Q1 2016. On a GAAP basis, the Company's segment operating profit also increased 18% on a y-o-y basis to $676 million.

ADM's earnings for Q1 2017 rose to $339 million, or $0.59 per share, compared to earnings of $230 million or $0.39 per share, in Q1 2016. The Company's adjusted earnings totaled $0.60 per share, which was below Wall Street's expectations of $0.62 per share.

Segment Results

During Q1 2017, ADM's Agricultural Services segment's sales increased 5% to $6.81 billion. In Merchandising and Handling, North America grain showed better results, with improving grain carries and good execution volumes amid strong global demand for US commodities. Operating profit for the segment surged 16% to $88 million.

ADM's Corn Processing segment's revenues improved 1.7% to $2.24 billion. Sweeteners and starches delivered a strong performance on improved domestic demand and higher volumes and margins from the European business. Bioproducts also improved with very strong exports and improved margins driving solid results in ethanol. Animal nutrition was up, with improved margins in lysine offset partially by overall lower sales volumes caused by a mild winter. ADM' Corn Processing segment's adjusted operating profit soared 33% to $171 million.

For Q1 2017 Oilseeds Processing segment's revenue totaled $5.28 billion, up 6% on a y-o-y basis as the Company took advantage of its soft seed processing footprint and flex capacity to capitalize on margin opportunities both in North America and Europe. South America crush and origination was down, as the pace of farmer selling has not kept pace with export demand. The Oilseeds Processing segment's adjusted operating profit surged 20% on a y-o-y basis to $314 million.

Financial Metrics

As of March 31, 2017, ADM had cash and cash equivalents worth $476 million. At the end of Q1 2017, the Company's total debt was $7.2 billion, resulting in a net debt balance that is debt less cash of $6.5 billion. ADM's leverage position remains comfortable, with a net debt-to-total capital ratio of about 27%. The Company's operating working was $7.4 billion, down $280 million from the year ago same period. During the reported quarter, the Company returned $431 million to shareholders through dividends and share repurchases. ADM's trailing four-quarter-average adjusted ROIC was 6.4%, 40 basis points above annual WACC of 6.0%.

ADM generated about $508 million from operations before working capital changes during Q1 2017, down slightly from the prior year comparable period. Total capital spending for the reported period was $200 million.

Stock Performance

At the close of trading session on Monday, May 15, 2017, Archer-Daniels-Midland's stock price rose slightly by 0.43% to end the day at $42.14. A total volume of 3.04 million shares were exchanged during the session, which was above the 3-month average volume of 2.93 million shares. The Company's shares are trading at a PE ratio of 17.80 and have a dividend yield of 3.04%. The stock currently has a market cap of $23.99 billion.

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SOURCE: Active Wall Street