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Here's What Analysts Are Forecasting For Archer-Daniels-Midland Company (NYSE:ADM) After Its Third-Quarter Results
Shareholders might have noticed that Archer-Daniels-Midland Company (NYSE:ADM) filed its quarterly result this time last week. The early response was not positive, with shares down 7.5% to US$70.47 in the past week. Archer-Daniels-Midland missed revenue estimates by 4.9%, coming in atUS$22b, although statutory earnings per share (EPS) of US$1.70 beat expectations, coming in 3.7% ahead of analyst estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Archer-Daniels-Midland after the latest results.
Taking into account the latest results, the current consensus from Archer-Daniels-Midland's eight analysts is for revenues of US$90.2b in 2027. This would reflect a credible 7.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 7.4% to US$5.60. Before this earnings report, the analysts had been forecasting revenues of US$91.2b and earnings per share (EPS) of US$5.62 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Check out our latest analysis for Archer-Daniels-Midland
The analysts reconfirmed their price target of US$80.30, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Archer-Daniels-Midland, with the most bullish analyst valuing it at US$95.00 and the most bearish at US$60.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Archer-Daniels-Midland's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 5.8% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 2.9% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 0.8% per year. Not only are Archer-Daniels-Midland's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Archer-Daniels-Midland going out to 2028, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Archer-Daniels-Midland (including 1 which is a bit concerning) .
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