December 25, 2024

ADM

Archer-Daniels-Midland Reports Decline in EPS for 2023

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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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