Archer-Daniels Midland (ADM) stock plummeted by 5.12% in the pre-market trading session on Tuesday. The agricultural processing giant's shares tumbled following the company's release of its fourth-quarter earnings report, which missed analyst estimates and revealed a disappointing outlook for 2025, along with plans for significant cost-cutting measures.
ADM reported adjusted earnings per share of $1.14 for the fourth quarter of 2024, slightly missing the consensus estimate of $1.15. The company's revenue also fell short, coming in at $21.50 billion versus the expected $22.77 billion. ADM cited softer market conditions and policy uncertainties globally as key challenges impacting its performance.
Looking ahead, ADM provided cautious guidance for 2025, projecting adjusted earnings per share in the range of $4.00 to $4.75, with the midpoint falling below analyst expectations. The company attributed this outlook to weaker market fundamentals and ongoing biofuel and trade policy uncertainties. To address these challenges, ADM announced plans to target cost savings of $500 million to $750 million over the next several years through measures such as job cuts and operational improvements.