Archer Daniels Midland's 3Q15 Results: What to Expect?
Archer Daniels Midland
On November 3, 2015, Archer Daniels Midland (ADM) will be reporting its third quarter results for fiscal 2015. Archer Daniels procures, transports, stores, processes, and merchandises agricultural commodities and products. It’s a part of the food and agricultural industry and has its headquarters in Chicago, Illinois. Its peers in the industry include Ingredion (INGR), Bunge (BG), and Tyson Food (TSN). Ingredion and Bunge both will be reporting their third quarter results on October 29. Tyson will be reporting on November 16.
Stock price performance
Archer Daniels trades on the NYSE (New York Stock Exchange) under the ticker ADM. The stock reacted positively to the second quarter earnings release, rising by 1%. It has been following a rising trend since then, trading in the range of $42–$44. The shares showed a sudden rise of 3% following the company’s announcement of the acquisition of Eatem Foods Company on October 2. The news of the completion of the global sale of its cocoa business also had a positive effect on the stock. The stock closed at $46.2 on October 27. Ingredion, Bunge, and Tyson also trade on the NYSE. They closed at $92.1, $79.2, and $44.8, respectively, on October 27.
One of the major consumer staples ETFs is the PowerShares Dynamic Food & Beverage ETF (PBJ). It invests 4.9%, 3.2%, and 2.5% of its portfolio in Archer Daniels, Cal-Maine Foods (CALM), and Pinnacle Foods (PF). It closed at $33.5 on October 27. The ETF’s YTD (year-to-date) returns are 9.8%. Archer Daniels reported a YTD return of -11.1%, while Cal-Maine and Pinnacle reported 35.2% and 24.4,% respectively, as on October 27.
Pressure from private competitors’ results
Cargill Inc, Archer Daniels’s competitor in the private sector, reported its quarterly results on October 7. It had a strong quarter, reporting 20% quarterly profit of $512 million, bouncing back from its $51 million fall in its previous quarter. This puts immense pressure on its peers like Bunge and Archer Daniels, who will be reporting their upcoming quarterly results soon.
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