With a market cap of $22 billion, Archer-Daniels-Midland Company (ADM) engages in the procurement, transportation, storage, processing, and merchandising of agricultural commodities, ingredients, flavors, and solutions in the United States and internationally. Founded in 1902, the Chicago, Illinois-based company is expected to report its Q1 earnings on Tuesday, Apr. 29.
Ahead of the event, analysts expect ADM to report a profit of $0.71 per share, down 51.4% from a profit of $1.46 per share reported in the year-ago quarter. It has exceeded or met analysts' earnings estimates in three of the past four quarters, while missing in only one quarter. In the previous quarter, it reported EPS of $1.14, which surpassed the consensus estimate by 6.5%, driven by solid growth in its carbohydrate solutions segment.
For the current year 2025, analysts expect ADM to report EPS of $4.24, down 10.6% from $4.74 in fiscal 2024. Looking ahead, however, analysts expect its earnings to rebound in fiscal 2026, surging 13.9% year-over-year to $4.83 per share.
Over the past year, ADM shares have declined 23.9%, underperforming the S&P 500 Index’s ($SPX) 5.5% gains and the Consumer Staples Select Sector SPDR Fund’s (XLP) 11.4% return over the same time frame.
ADM stock closed up more than 2% on Mar. 26, outperforming the broader market as investors sought refuge in defensive sectors. The rally was part of a broader move into food producers and beverage makers, which tend to be more resilient during periods of market volatility.
Moreover, analysts remain skeptical about ADM stock’s future prospects, with a "Hold" rating overall. Among 11 analysts covering the stock, opinions include eight "Holds," two “Moderate Sells,” and one "Strong Sell." ADM's mean price of $48.80 implies a premium of 5.1% from its prevailing price level.
