Agricultural products maker Archer Daniels Midland Company ( ADM ) on Tuesday posted much lower-than-expected fiscal fourth quarter earnings despite a solid revenue gain, as higher taxes and expenses cut into its bottom line.
The Decatur, IL-based company reported fourth quarter net income of $381 million, or 58 cents per share, compared with $446 million, or 69 cents per share, in the year-ago period.
Revenue surged nearly 46% from last year to $22.87 billion.
On average, Wall Street analysts expected a much higher profit of 85 cents per share, albeit on significantly lower revenue of $20.43 billion.
ADM noted that its effective tax rate ballooned to 50% in the latest quarter compared with 19% last year.
Archer Daniels Midland shares fell 98 cents, or -3.2%, in premarket trading Tuesday.
The Bottom Line
Shares of Archer Daniels Midland ( ADM ) have a 2.10% dividend yield, based on last night's closing stock price of $30.48. The stock has technical support in the $28 price area. If the shares can firm up, we see overhead resistance around the $32-$34 price levels.
Archer Daniels Midland Company ( ADM ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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