Archer Daniels Midland Company (ADM – Analyst Report), a leading player in the global food processing industry, released fourth-quarter 2015 results, wherein adjusted earnings of 61 cents a share came way below the Zacks Consensus Estimate of 65 cents and plunged 39% from $1.00 a share earned in the year-ago quarter.

Earnings Estimate Revision: The Zacks Consensus 2016 Estimate portrays a downtrend in the last 30 days. Moreover, Archer Daniels’ performance in the trailing four quarters (excluding the quarter under review) gives a negative picture, with an average surprise of -5.2%.

Revenues: Archer Daniels generated net sales of $16,445 million, which was down 21.3% year over year and missed the Zacks Consensus Estimate of $20,183 million owing to decline at all of its operating segments.

Key Events: Focused on its strategic plan, Archer Daniels expanded its international corn processing footprint with the Eaststarch acquisition, enhanced its destination marketing strategy by entering the Medsofts Egyptian joint venture, and strengthened its European Olenex refined oils joint venture, in the fourth quarter.

Additionally, concurrent with this release, the company announced its investment in a leading producer of non-GMO, organic and gluten-free ingredients, named Harvest Innovations. Also, progressing with its portfolio management efforts the company completed the divestiture of its global cocoa business.
 
Zacks Rank: Currently, Archer Daniels carries a Zacks Rank #4 (Sell) which is subject to change based on the just released earnings results.

Stock Movement: Archer Daniels’ shares are down nearly 2.7% during pre-market trading hours following the earnings release. Clearly, a negative sentiment is palpable among investors following the company’s lower-than-expected sales results.