Archer Daniels Midland Company (ADM)

ExcelALife (< 20) Submitted: 8/17/06 8:35 PM : Start Price: $39.17 ADM Score: -21.98

The company is in the sweet spot of the government mandated move to ethanol. As a result, ADM registered more than doubled
fourth-quarter earnings, driven by an increase in demand for processed oilseeds and corn byproducts such as ethanol.

Fiscal-fourth quarter earnings were buoyed by sharply rising ethanol prices, and once again easily beat analyst estimates. Quarterly profit totaled $410.3 million, or 62 cents per share, compared with a profit of $195.5 million, or 30 cents per
share, during the same period last year. Analysts expected 53 cents per share.

Earnings momentum is in full force as evidenced by the last three quarters, in which the company has exceeded estimates by an average of about 18%. This year's earnings estimates have
increased 9.7% to $2.59 over the past three months, while next year's numbers have jumped 11.5% to $2.90 per share.

Report this Post Replies: 0 | Reply