Andersons (ANDE) Earnings and Revenues Top Estimates in Q4
The Andersons, Inc. ANDE reported adjusted earnings per share (EPS) of 98 cents in fourth-quarter 2022, marking a year-over-year fall of 14%. However, the bottom line surpassed the Zacks Consensus Estimate of 40 cents.
Including one-time items, the company reported EPS of 44 cents in the quarter compared with the prior-year quarter’s 95 cents.
Operational Update
Revenues in the fourth quarter went up 23.6% year over year to $4,677 million. The top line surpassed the Zacks Consensus Estimate of $4,564 million.
Cost of sales increased 25.6% to $4,507 million from $3,589 million posted in the prior-year quarter. Gross profit fell 12.4% year over year to $170 million. The gross margin reduced to 3.6% in the quarter compared with the year-ago quarter’s 5.1%.
Operating, administrative and general expenses were up 14.3% year over year to $136 million. The adjusted operating profit was $50 million in the fourth quarter compared with $53 million in the prior-year period. Adjusted EBITDA was $104 million in the December-end quarter compared with $130 million in the prior-year period.
The Andersons, Inc. Price, Consensus and EPS Surprise
The Andersons, Inc. price-consensus-eps-surprise-chart | The Andersons, Inc. Quote
Segmental Performance
The Trade segment’s revenues rose 30.3% year over year to $3,625 million. The segment reported an adjusted operating profit of $52 million, suggesting a year-over-year surge of 92.6%.
The Renewables segment’s revenues were $798 million compared with the year-earlier quarter’s $767 million. The segment reported an adjusted operating profit of $12 million compared with the prior-year quarter’s operating profit of $27 million.
The Plant Nutrient segment reported revenues of $255 million, up 9% from the prior-year quarter’s level. It reported an operating profit of $2 million compared with the year-earlier quarter’s $16 million.
Financial Performance
Andersons reported cash and cash equivalents of $115 million at the end of 2022, down from $216 million reported at the end of the prior year. The company’s long-term debt was $493 million in 2022 compared with $600 million in 2021.
2022 Performance
Andersons reported an adjusted EPS of $4.05 in 2022 compared with $2.89 per share in the prior year. Earnings beat the Zacks Consensus Estimate of $3.49. Including one-time items, the bottom line was $3.46 compared with $2.94 in 2021.
Sales were up 37.4% year over year to $17.3 billion. The top line surpassed the Zacks Consensus Estimate of $17.2 billion.
Price Performance
Andersons’ shares have lost 5.2% in the past year compared with the industry’s fall of 9.5%.
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Zacks Rank & Other Stocks to Consider
Andersons currently has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space are CalMaine Foods, Inc. CALM, Reliance Steel & Aluminum Co. RS and Teck Resources Limited TECK. CALM and RS currently flaunt a Zacks Rank #1 (Strong Buy), and TECK carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CalMaine Foods’ fiscal 2023 earnings per share is pegged at $16.75, suggesting 515.8% growth from the year-ago reported figure. Earnings estimates have moved 106.8% north in the past 60 days. CALM has a trailing four-quarter earnings surprise of 15.3%, on average. Its shares have gained 27.9% in the past year.
The Zacks Consensus Estimate for Reliance Steel’s earnings per share is pegged at $28.65 for 2022, indicating a year-over-year growth rate of 29.5%. Earnings estimates have been revised 0.2% upward in the past 60 days. RS has a trailing four-quarter average surprise of 13.6%, on average. The company has gained 42.7% in a year.
The Zacks Consensus Estimate for Teck Resources Limited’s 2022 earnings per share is pegged at $7.06, suggesting 56.1% growth from the year-ago reported figure. Earnings estimates have moved 3.4% north in the past 60 days. TECK has a trailing four-quarter earnings surprise of 3.7%, on average. Its shares have gained 16.3% in the past year.
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