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The Zacks Consensus Estimate for the company’s second-quarter earnings is pegged at $1.74 per share, which suggests growth of 30.8% from the year-ago quarter’s reported figure. However, the consensus mark has moved up 3% in the past 30 days. For second-quarter revenues, the consensus mark is pegged at $25.3 billion, suggesting 10.2% growth from the prior-year quarter’s reported figure.
In the last reported quarter, the company delivered an earnings surprise of 40.74%. Its earnings outperformed the Zacks Consensus Estimate by 22.3%, on average, in the trailing four quarters.
Key Factors to Note
Archer Daniels has been gaining from solid demand, improved productivity, product innovations and persistent growth in the Nutrition segment. Significant gains in the Human and Animal Nutrition units have been aiding the Nutrition business. The above-mentioned trends are expected to have continued in the second quarter.
Within the Human Nutrition unit, strength across all businesses, along with the continued momentum in Flavors, bodes well. Sales growth in alternative proteins, including gains from the Sojaprotein buyout, is likely to have aided the Specialty Ingredients unit. The Health & Wellness unit has been witnessing robust quarterly growth, driven by improvements in probiotics, gains from its Deerland Probiotics buyout and solid fiber demand.
The Animal Nutrition unit is expected to have witnessed a continued positive demand for amino acids, stemming from positive changes in the product mix and sturdy demand in North America.
On its last reported quarter’s earnings call, management expected the nutrition segment to significantly grow year over year in the second quarter.
The company has been making efforts to expand its solutions portfolio, which forms part of its Carbohydrate Solutions unit. The company has also been utilizing innovative technologies to develop products and boost operating capabilities. Such endeavors are expected to have aided the company’s top line in the quarter under review.
However, Archer Daniels has been exposed to headwinds, including higher performance-related compensation, project-related costs, and shifting of costs from business segments into the centralized centers of excellence in the supply chain and operations. It has been reeling under the impacts of the pandemic and the conflict in Ukraine. This, along with disruptions in the Black Sea region and inflationary pressures, remains concerning. Also, elevated energy costs are expected to have acted as a deterrent.
Archer Daniels Midland Company Price and EPS Surprise
Our proven model conclusively predicts an earnings beat for Archer Daniels this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Archer Daniels has a Zacks Rank #3 and an Earnings ESP of +2.59%.
Other Stocks With Favorable Combination
Here are some other companies that you may want to consider, as our model shows that these also have the right combination of elements to deliver an earnings beat.
Corteva (CTVA - Free Report) has an Earnings ESP of +8.12% and currently sports a Zacks Rank #1. CTVA is anticipated to register top and bottom-line growth when it reports the second-quarter 2022 results. The Zacks Consensus Estimate for Corteva’s quarterly revenues is pegged at $6.2 billion, indicating an improvement of 9.4% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Corteva’s bottom line has been unchanged in the past 30 days to $1.46 per share. However, the consensus estimate for CTVA suggests growth of 4.3% from the year-ago quarter’s reported figure. CTVA delivered an earnings beat of 22.3%, on average, in the trailing four quarters.
Lamb Weston (LW - Free Report) currently has an Earnings ESP of +0.99% and a Zacks Rank #2. LW is likely to register top and bottom-line growth when it reports the second-quarter 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.1 billion, which suggests growth of 6% from the figure reported in the prior-year quarter.
However, the Zacks Consensus Estimate for Lamb Weston’s quarterly earnings has moved up by a penny in the past 30 days to 51 cents per share, suggesting an increase of 15.9% from the year-ago quarter’s reported number. LW delivered an earnings beat of 18.1%, on average, in the trailing four quarters.
Hershey (HSY - Free Report) currently has an Earnings ESP of +1.84% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports the second-quarter 2022 numbers. The Zacks Consensus Estimate for ADM’s quarterly revenues is pegged at $2.2 billion, which suggests growth of 11.7% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Hershey’s quarterly earnings has moved up by a penny in the past 30 days at $1.67 per share, suggesting a 13.6% decline from the year-ago reported number. HSY delivered an earnings beat of 7.9%, on average, in the trailing four quarters.
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Here's Why Archer Daniels (ADM) is Poised for Q2 Earnings Beat
Archer Daniels Midland Company (ADM - Free Report) is slated to report second-quarter 2022 results on Jul 26, before market open.
The Zacks Consensus Estimate for the company’s second-quarter earnings is pegged at $1.74 per share, which suggests growth of 30.8% from the year-ago quarter’s reported figure. However, the consensus mark has moved up 3% in the past 30 days. For second-quarter revenues, the consensus mark is pegged at $25.3 billion, suggesting 10.2% growth from the prior-year quarter’s reported figure.
In the last reported quarter, the company delivered an earnings surprise of 40.74%. Its earnings outperformed the Zacks Consensus Estimate by 22.3%, on average, in the trailing four quarters.
Key Factors to Note
Archer Daniels has been gaining from solid demand, improved productivity, product innovations and persistent growth in the Nutrition segment. Significant gains in the Human and Animal Nutrition units have been aiding the Nutrition business. The above-mentioned trends are expected to have continued in the second quarter.
Within the Human Nutrition unit, strength across all businesses, along with the continued momentum in Flavors, bodes well. Sales growth in alternative proteins, including gains from the Sojaprotein buyout, is likely to have aided the Specialty Ingredients unit. The Health & Wellness unit has been witnessing robust quarterly growth, driven by improvements in probiotics, gains from its Deerland Probiotics buyout and solid fiber demand.
The Animal Nutrition unit is expected to have witnessed a continued positive demand for amino acids, stemming from positive changes in the product mix and sturdy demand in North America.
On its last reported quarter’s earnings call, management expected the nutrition segment to significantly grow year over year in the second quarter.
The company has been making efforts to expand its solutions portfolio, which forms part of its Carbohydrate Solutions unit. The company has also been utilizing innovative technologies to develop products and boost operating capabilities. Such endeavors are expected to have aided the company’s top line in the quarter under review.
However, Archer Daniels has been exposed to headwinds, including higher performance-related compensation, project-related costs, and shifting of costs from business segments into the centralized centers of excellence in the supply chain and operations. It has been reeling under the impacts of the pandemic and the conflict in Ukraine. This, along with disruptions in the Black Sea region and inflationary pressures, remains concerning. Also, elevated energy costs are expected to have acted as a deterrent.
Archer Daniels Midland Company Price and EPS Surprise
Archer Daniels Midland Company price-eps-surprise | Archer Daniels Midland Company Quote
What the Zacks Model Unveils
Our proven model conclusively predicts an earnings beat for Archer Daniels this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Archer Daniels has a Zacks Rank #3 and an Earnings ESP of +2.59%.
Other Stocks With Favorable Combination
Here are some other companies that you may want to consider, as our model shows that these also have the right combination of elements to deliver an earnings beat.
Corteva (CTVA - Free Report) has an Earnings ESP of +8.12% and currently sports a Zacks Rank #1. CTVA is anticipated to register top and bottom-line growth when it reports the second-quarter 2022 results. The Zacks Consensus Estimate for Corteva’s quarterly revenues is pegged at $6.2 billion, indicating an improvement of 9.4% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Corteva’s bottom line has been unchanged in the past 30 days to $1.46 per share. However, the consensus estimate for CTVA suggests growth of 4.3% from the year-ago quarter’s reported figure. CTVA delivered an earnings beat of 22.3%, on average, in the trailing four quarters.
Lamb Weston (LW - Free Report) currently has an Earnings ESP of +0.99% and a Zacks Rank #2. LW is likely to register top and bottom-line growth when it reports the second-quarter 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.1 billion, which suggests growth of 6% from the figure reported in the prior-year quarter.
However, the Zacks Consensus Estimate for Lamb Weston’s quarterly earnings has moved up by a penny in the past 30 days to 51 cents per share, suggesting an increase of 15.9% from the year-ago quarter’s reported number. LW delivered an earnings beat of 18.1%, on average, in the trailing four quarters.
Hershey (HSY - Free Report) currently has an Earnings ESP of +1.84% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports the second-quarter 2022 numbers. The Zacks Consensus Estimate for ADM’s quarterly revenues is pegged at $2.2 billion, which suggests growth of 11.7% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Hershey’s quarterly earnings has moved up by a penny in the past 30 days at $1.67 per share, suggesting a 13.6% decline from the year-ago reported number. HSY delivered an earnings beat of 7.9%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.