ADM stock has gained
Archer Daniels Midland (ADM) is an agricultural company based in Chicago, Illinois. Through its four segments, it procures transports, stores, processes, and merchandises agricultural commodities and products. It will report its fiscal 1Q16 results before the opening bell on May 3.
On March 31, Archer Daniels Midland entered into an agreement with JFLim Participações to sell its sugarcane ethanol operations. The announcement was made after the Market closed on March 31. As a result, the news didn’t have much of an impact on Archer Daniels Midland’s stock price. The stock rose 0.44% to $36.47 on April 1—compared to its price of $36.31 on March 31.
The announcement of Archer Daniels Midland’s investment for National Foodworks Services’ (NFS) new headquarters was made on April 19. The stock closed 1% higher on the same day at $38.23. It rose another 2% and closed at $38.87 on April 20. So far in 2016, Archer Daniels Midland has gained 11% as of April 26. It rose 4% since this announcement.
Archer Daniels Midland stock gained 23% since its last quarter earnings release on February 2. The stock fell ~9% after the company reported its fiscal 4Q15 results. The company missed its earnings and revenue estimates. For fiscal 2015, its earnings and revenue declined by 19% and 17%, respectively.
Archer Daniels Midland lost 30% in fiscal 2015. It outperformed the Market represented by the S&P 500 Index by 7% as of April 26. It closed at $39.73 on April 26.
Peers’ stock performance
So far in 2016, Archer Daniels Midland’s peer Pinnacle Foods (PF) has returned 4%. Ingredion (INGR) has returned 16%. Bunge (BG) lost 10%, respectively. They closed at $44.09, $107.27, and $59.97, respectively, on April 26. Its peers in the industry also include Flowers Foods (FLO) and Cal-Maine Foods (CALM). So far, they returned -11.5% and 8.4% in 2016. The FlexShares Morningstar Global Upstream Natural Resources (GUNR) and the PowerShares Dynamic Large Value (PWV) invest 3.4% and 1.3% of their portfolios in Archer Daniels Midland.
With Archer Daniels Midland’s fiscal 1Q16 earnings release due next week, we’ll focus on what to expect in the earnings release. We’ll cover analysts’ revenue estimates, what could impact the revenue, the earnings per share, and what could impact earnings. We’ll also discuss what Archer Daniels Midland’s priority is for 2016. Finally, we’ll look at the expected stock price over the next 12 months along with the moving averages.