NEW YORK (TheStreet) -- Shares of Archer Daniels Midland Co. (ADM) closed up 1.12% to $50.34 in Monday's regular trading session, one day ahead of the company's scheduled first quarter 2015 earnings release tomorrow before the market opens.
Analysts polled by Thomson Reuters expect the company to announce earnings of 71 cents per share on revenue of $20.58 billion for the quarter.
In the same quarter of last year, the company posted earnings of 55 cents per share on revenue of $20.7 billion.
Decatur, IL-based Archer Daniels Midland is engaged in the processing of oil seeds, corn, wheat, cocoa, and other agricultural commodities.
The company's operations are classified into three business segments including oil seeds processing, corn processing, and agricultural services.
Separately, TheStreet Ratings team rates ARCHER-DANIELS-MIDLAND CO as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ARCHER-DANIELS-MIDLAND CO (ADM) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 87.4% when compared to the same quarter one year prior, rising from $374.00 million to $701.00 million.
- Net operating cash flow has significantly increased by 117.39% to $450.00 million when compared to the same quarter last year. In addition, ARCHER-DANIELS-MIDLAND CO has also vastly surpassed the industry average cash flow growth rate of 56.71%.
- ADM's debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.71 is somewhat weak and could be cause for future problems.
- You can view the full analysis from the report here: ADM Ratings Report