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CHICAGO - Archer-Daniels-Midland Co. (NYSE:ADM) reported better-than-expected first quarter earnings on Tuesday.
But the company’s shares fell 1.54% as it guided to the lower end of its full-year forecast range.
The agricultural commodities trader posted adjusted earnings of $0.70 per share for Q1 2025, beating analyst estimates of $0.67. Revenue came in at $20.18 billion, down from $21.85 billion in the same quarter last year.
ADM’s largest segment, Ag Services & Oilseeds, saw operating profit plummet 52% YoY to $412 million, impacted by lower volumes and margins. However, the Nutrition segment provided a bright spot, with operating profit rising 13% to $95 million.
"ADM delivered results aligned with our outlook and the market expectations for the first quarter," said CEO Juan Luciano. He noted the company advanced its "self-help agenda" including operational improvements and cost savings initiatives.
While reaffirming full-year adjusted EPS guidance of $4.00 to $4.75, ADM now expects results to come in at the lower end of that range "given current market conditions." This cautious outlook appeared to weigh on the stock despite the Q1 earnings beat.
The company continues to target $500 million to $750 million in cost reductions over the next 3-5 years as it navigates a challenging commodity price environment.
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