{"id":23218,"date":"2023-04-25T18:11:29","date_gmt":"2023-04-25T18:11:29","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/adm-profit-tops-forecasts\/"},"modified":"2023-04-25T18:14:25","modified_gmt":"2023-04-25T18:14:25","slug":"adm-profit-tops-forecasts","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/adm-profit-tops-forecasts\/","title":{"rendered":"ADM profit tops forecasts, shares drop as outlook disappoints"},"content":{"rendered":"<p>By Karl Plume and Sourasis  Bose<\/p>\n<p>CHICAGO (Reuters) -Archer-Daniels-Midland Co beat Wall Street expectations on Tuesday with a record first-quarter profit but its shares fell as it forecast full-year earnings below some analyst estimates and investors focused on thinner oilseed crush margins.<\/p>\n<p>A record-large Brazilian soybean crop and strong exports lifted earnings in the grain merchant&#8217;s Ag Services and Oilseeds segment, its largest by revenue and volumes, more than offsetting weaker results in its ethanol and nutrition businesses.<\/p>\n<p>ADM forecast 2023 earnings at between $6 and $7 per share, down from a record $7.85 in 2022 and below some analyst estimates. Its shares were down 5.5% at $76.37 at midday.<\/p>\n<p>ADM and its agribusiness peers have drawn support from strong demand for food, feed and biofuel, while global food supply chain disruptions, such as lower grain shipments from war-torn Ukraine, have boosted prices.<\/p>\n<p>But weaker-than-expected oilseed processing margins in major markets worried some investors as ADM estimated U.S. margins at $55 to $65 per tonne in the first quarter, down from $90 to $100 in the prior quarter.<\/p>\n<p>The second quarter &#8220;is expected to be weaker, primarily due to lower profits in the crushing sub-segment, as global soybean crush margins have compressed since the end of 2022,&#8221; CFRA analyst Arun Sundaram said.<\/p>\n<p>&#8220;Consensus estimates for both 2023 and 2024 will likely need to come down,&#8221; he said.<\/p>\n<p>Supply chain middlemen such as ADM make money by processing, trading and shipping crops, often thriving when crises such as droughts or war trigger shortages.<\/p>\n<p>&#8220;Supply and transportation constraints in the Black Sea region, severe drought in Argentina, the record Brazilian crop and a resurgence of demand in China post lockdown allowed our team to take full advantage of our global footprint,&#8221; CEO Juan Luciano said.<\/p>\n<p>Demand for vegetable oils has also soared as biofuel makers have expanded capacity to produce renewable diesel.<\/p>\n<p>ADM&#8217;s adjusted net earnings stood at $2.09 per share for the three months ended March 31, topping the $1.78 expected by analysts, Refinitiv Eikon data showed.<\/p>\n<p> (Reporting by Sourasis Bose in Bengaluru and Karl Plume in Chicago; editing by Shilpi Majumdar, Jason Neely, David Gregorio and Barbara Lewis)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/adm-profit-tops-forecasts\/illustration-archer-daniels-midland-co-adm-logo\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3O0EY-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ3O0EY-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Karl Plume and Sourasis Bose CHICAGO (Reuters) -Archer-Daniels-Midland Co beat Wall Street expectations on Tuesday with a record first-quarter profit but its shares fell as it forecast full-year earnings below some analyst estimates and investors focused on thinner oilseed crush margins. A record-large Brazilian soybean crop and strong exports lifted earnings in the grain [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":23219,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[],"class_list":["post-23218","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3O0EY-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/23218","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=23218"}],"version-history":[{"count":1,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/23218\/revisions"}],"predecessor-version":[{"id":23220,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/23218\/revisions\/23220"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/23219"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=23218"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=23218"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=23218"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}