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ADM Boosts Annual Profit Forecast on Strong Oilseed Outlook
Archer-Daniels-Midland (ADM) on Tuesday raised its full-year profit forecast and posted quarterly earnings that beat Wall Street estimates, citing a robust outlook for its oilseed processing business. Shares of the agricultural giant rose 2.7% in premarket trading following the announcement.
Upgraded Guidance and Earnings Beat
The Chicago-based company now expects its 2026 adjusted earnings to be in the range of $5.15 to $5.60 per share. This marks a significant increase from its previous forecast of $4.15 to $4.70 per share.
For the second quarter ended June 30, ADM reported strong results:
- Adjusted Profit: $1.84 per share.
- Analyst Consensus: Topped the average estimate of $1.44 per share, according to data compiled by LSEG.
AdFavorable Market Conditions
ADM's improved outlook is underpinned by favorable conditions in the agricultural markets. According to a Reuters report, a recent rally in U.S. grain prices has prompted farmers to sell corn and soybeans that had been held in storage from last year's harvest.
This increase in farmer selling has boosted the supply of raw materials flowing to processing facilities, including ADM's soybean plants and ethanol refineries, creating a more favorable operating environment for the company.
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