NEW YORK (TheStreet) -- Archer-Daniels-Midland (ADM - Get Report) shares closed trading up 0.13% to $50.35 on Tuesday after the agricultural commodities processor reported its first quarter earnings results before the opening bell today.
The Decatur, IL-based company reported an 85% increase in first quarter net income to $493 million, or 77 cents per diluted share, on revenue that fell 15% to $17.51 billion. Analysts on average were expecting the company to report earnings of 71 cents per share on revenue of $20.45 billion.
The wild swings in its quarterly bottom line are related to the company's purchase of Swiss food packager Wild Flavors for $3.13 billion during the quarter. Additionally, the company sold its chocolate manufacturing segment for $440 million and its cocoa business for $1.3 billion.
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:
- You can view the full analysis from the report here: ADM Ratings Report