Skip to main content

Market Overview

Jefferies Previews ADM's F3Q11 Results

Share:

Archer Daniels Midland Company's (NYSE: ADM) F3Q11 EPS likely to feature “numerous pushes and pulls, but we expect another quarter of very strong Ag Services margins (global commodity dislocation tailwind) and favorable commodity positioning to drive another quarter of EPS upside,” Jefferies reports.

“We've modeled an Ag Services EBIT margin of 3.6% in F3Q11, up 120 bps vs. the year-ago number and down 40 bps vs. F2Q11,” Jefferies writes. “Global commodity dislocation provided a sizable volume and margin tailwind for the segment in the December quarter, with ADM delivering record company export volumes out of the U.S.

“A closer look at the segment's historical profitability trends strongly suggests that once global dislocation and commodity price volatility emerge, elevated profitability levels will demonstrate staying power. In other words, once the margin pendulum begins to swing in the Ag Services segment, it does not change direction quickly.”

Archer Daniels Midland closed Monday at $35.69.

 

Related Articles (ADM)

View Comments and Join the Discussion!

Posted-In: archer daniels midland JefferiesAnalyst Ratings

Latest Ratings

StockFirmActionPT
SEDGB of A SecuritiesMaintains411.0
PTLOPiper SandlerMaintains28.0
AOUTLake StreetMaintains26.0
RAPTPiper SandlerMaintains52.0
OCXLake StreetMaintains6.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com