NEW YORK (TheStreet) -- Shares of Archer Daniels Midland (ADM - Get Report) are slumping 2.80% to $43 in pre-market trading as the Decatur, IL-based seed processor reported lower-than-expected earnings and revenue before today's opening bell.
Archer Daniels Midland reported earnings of 41 cents per share, falling short of analysts' projected 45 cents per share. Revenue came in at $15.63 billion, missing analysts' expected $16.71 billion.
Last year, the company posted earnings of 60 cents per share on revenue of $17.9 billion.
Archer Daniels Midland's merchandising and handling earnings fell due to compressed margins across the U.S. grain handling network, the company said. Transportation results decreased as a result of weak barge demand and lower freight rates.
The company's other sectors, including bioproducts, lysine, oilseeds processing and refining, packaging and biodiesel, all saw declines in results.
"The first half of the year was very challenging," said Archer Daniels Midland CEO Juan Luciano in a statement. "However, with improved fundamentals, we anticipate a more favorable second half of the year."
Archer Daniels Midland said market conditions improved toward the end of the second quarter, resulting in an improved outlook for the second half of 2016.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate ARCHER-DANIELS-MIDLAND CO as a Buy with a ratings score of B. 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 reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
You can view the full analysis from the report here: ADM