Archer Daniels beats the Street, warns of crop disruptions around the world

Archer Daniels Midland Co.
ADM,
-1.32%
shares rose nearly 4% in Tuesday premarket trading after it reported first-quarter earnings that beat the Street. The nutrition company, which produces ingredients like sweeteners and flavors, posted net income of $1.054 billion, or $1.86 per share, up from $689 million, or $1.22 per share, last year. Adjusted EPS of $1.90 blew past the FactSet consensus of $1.41. Revenue of $23.650 billion was up from $18.893 billion and also ahead of the FactSet consensus for $20.779 billion. “Looking forward, we expect reduced crop supplies – caused by the weak Canadian canola crop, the short South American crops, and now the disruptions in the Black Sea region – to drive continued tightness in global grain markets for the next few years,” said Chief Executive Juan Luciano in a statement. “Longer term, markets continue to reflect the importance of the enduring global trends that are fueling performance across our portfolio by driving demand for our products.” Archer Daniels stock has advanced 51.7% over the last year.