Archer-Daniels-Midland Q3 Earnings Beat Estimates Despite Lower Sales

Strong demand for biodiesel and food oil boosts profit margins, while lower Ag Services and a decrease in demand for plant-based proteins contribute to reduced sales.

Archer-Daniels-Midland Company reported Q3 FY23 sales of $21.695 billion, missing consensus estimates of $23.68 billion. However, the adjusted EPS of $1.63 surpassed analyst prediction of $1.52.
Segment operating profit fell to $1.421 billion from $1.559 billion a year ago, with Ag Services and Oilseeds section performing lower than previous years due to the shift of exports to South America.
Despite lower demand for plant-based proteins contributing to reduced sales, the company saw boosted earnings from strong export and domestic demand for biodiesel and food oil, specifically in the EMEA region and the US.
The ADM's refined products reported an increase in adjusted operating profit at $337 million in the quarter, compared to $295 million a year ago.
Archer Daniels Midland Company shares have declined by 22% since the start of the year and fell by 19% in the last 12 months, trading lower by 2.43% at $70.64 as per the latest update.