The Dividend Daily

Agricultural processor Archer Daniels Midland Company (ADM) posted third quarter earnings on Tuesday that easily beat analyst expectations, sending its shares higher.

The Decatur, Illinois-based company reported third quarter net income of $496 million, or 77 cents per share, down from $1.05 billion, or $1.62 per share, in the year-ago period.

On average, Wall Street analysts expected a much lower profit of just 57 cents per share.

The company said that net sales fell 29% from last year to $14.92 billion, hampered by lower selling prices and currency effects. Last year’s record third quarter was bolstered by historically high selling prices.

Archer Daniels Midland shares rose $1.35, or +4.4%, in morning trading Tuesday.

The Bottom Line
We have avoided shares of ADM since our early June coverage began last year, when the stock was trading at $37.20. The company has a 1.83% dividend yield, based on last night’s closing stock price of $30.52. The stock has technical support in the $24-$25 price area. If the shares can firm up, we see overhead resistance around the $32-$36 price levels. We would remain on the sidelines for now.

Archer Daniels Midland Company (ADM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.