Archer-Daniels-Midland Reports Decline in EPS for 2023

By Tamara Parker • Tuesday, March 12 15:15 • Permanent Link

ADM (NYSE: ADM) has released its financial results for the fourth quarter and full year ended December 31, 2023. The company reported a full-year reported EPS of $6.43 and adjusted EPS of $6.98. This represents a 17% decrease in reported EPS and an 11% decrease in adjusted EPS compared to the previous year.

In the fourth quarter of 2023, ADM's segment operating profit on a GAAP basis was $1,235 million, with a reported EPS of $1.06, representing a 23% decrease in segment operating profit and a 42% decrease in EPS compared to the fourth quarter of 2022. On a non-GAAP basis, the adjusted segment operating profit was $1,399 million, with an adjusted EPS of $1.36, reflecting a 16% decrease in segment operating profit and a 30% decrease in EPS compared to the same period in 2022.

For the full year 2023, ADM's segment operating profit on a GAAP basis was $5,900 million, with a reported EPS of $6.43, marking a 10% decrease in segment operating profit and a 17% decrease in reported EPS compared to the previous year. On a non-GAAP basis, the adjusted segment operating profit was $6,244 million, with an adjusted EPS of $6.98, indicating a 6% decrease in segment operating profit and an 11% decrease in adjusted EPS compared to 2022.

The breakdown of the segment operating profit for the fourth quarter and full year 2023 is as follows: Ag Services & Oilseeds: $954 million in the fourth quarter, down 20% from the prior year, and $4,067 million for the full year, an 8% decrease from 2022. Carbohydrate Solutions: $309 million in the fourth quarter, up 12% from the prior year, and $1,375 million for the full year, a 3% decrease from 2022. Nutrition: Negative $10 million in the fourth quarter, down 110% from the prior year, and $427 million for the full year, a 36% decrease from 2022. Other: $146 million in the fourth quarter, up 64% from the prior year, and $375 million for the full year, a 125% increase from 2022.

ADM also provided guidance for the full year 2024, expecting adjusted earnings per share in the range of $5.25 to $6.25 per share, reflecting an 18% decrease at the midpoint compared to 2023. The company also announced an additional $2 billion in share repurchases under its existing 200 million share repurchase program that runs through 2024.

Following these announcements, the company's shares moved 4.4%, and are now trading at a price of $57.31. For the full picture, make sure to review Archer-Daniels-Midland's 8-K report.

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