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Archer Daniels Fourth Quarter Earnings Preview
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ADM
In the lead up to Archer Daniels' (NYSE:ADM) announcement of its fourth quarter earnings on Tuesday, July 31, 2012 analysts' expectations have fallen over the past month to earnings of 64 cents per share from earnings of 72 cents per share.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: Earnings: Quality Means Everything
What to Expect: The consensus estimate for ADM's earnings is 64 cents per share, up 10.3% from a year ago when the company reported earnings of 58 cents per share.
Whereas the consensus estimate was 70 cents three months ago, it has since fallen. Analysts are expecting earnings of $2.48 per share for the fiscal year.
Revenue for the quarter is expected to be $22.87 billion, unchanged from last year. The anticipated revenue for the fiscal year is $88.84 billion.
Company Performance: Revenue has risen for four consecutive quarters now. It increased 5.4% to $21.16 billion in the third quarter. Prior to that, the figure rose 11.4% in the second quarter, 30.4% in the first quarter and 45.6% in the fourth quarter of the last fiscal year.
Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Can Investors Trust the P/E Ratio?
The stock price has fallen 14.1% since April 27, 2012, from $31.08 to $26.71. ADM's stock price is on a downward streak. The share price has fallen 89 cents since July 18, 2012.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: Earnings: Quality Means Everything
What to Expect: The consensus estimate for ADM's earnings is 64 cents per share, up 10.3% from a year ago when the company reported earnings of 58 cents per share.
Whereas the consensus estimate was 70 cents three months ago, it has since fallen. Analysts are expecting earnings of $2.48 per share for the fiscal year.
Revenue for the quarter is expected to be $22.87 billion, unchanged from last year. The anticipated revenue for the fiscal year is $88.84 billion.
Company Performance: Revenue has risen for four consecutive quarters now. It increased 5.4% to $21.16 billion in the third quarter. Prior to that, the figure rose 11.4% in the second quarter, 30.4% in the first quarter and 45.6% in the fourth quarter of the last fiscal year.
Perhaps one of the most widely-used stock analysis tools is the price-to-earnings ratio, or P/E. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: Can Investors Trust the P/E Ratio?
The stock price has fallen 14.1% since April 27, 2012, from $31.08 to $26.71. ADM's stock price is on a downward streak. The share price has fallen 89 cents since July 18, 2012.
by
Investopedia Staff
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