Archer-Daniels Midland Co
ADM: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $46.00 | Ngxm | Zfymlrg |
Archer-Daniels Midland: Shares Down on Nutrition Business Financial Statement Investigation
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Archer-Daniels Midland, or ADM, announced its nutrition business is under investigation for potentially overstating its revenue and profits. In addition to the announcement, ADM also announced reduced guidance due to lower results in the nutrition business, which generated 11% of profits in 2022. Currently, none of the company's other businesses are involved in the investigation. Based on ADM's 2023 adjusted earnings per share guidance cut to at least $6.90, we estimate over a 40% profit decline in 2023 versus the 2022 stated financials. However, prior nutrition business financial statements could also be restated.