Andersons (NASDAQ:ANDE) Issues Earnings Results, Beats Expectations By $0.27 EPS

Andersons (NASDAQ:ANDE) announced its earnings results on Tuesday. The basic materials company reported $1.38 EPS for the quarter, beating analysts’ consensus estimates of $1.11 by $0.27, FiscalAI reports. The firm had revenue of $2.83 billion for the quarter, compared to analysts’ expectations of $2.97 billion. Andersons had a return on equity of 17.35% and a net margin of 1.84%. Andersons’s quarterly revenue was up 5.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.59 EPS.

Andersons Stock Performance

Shares of ANDE traded up $1.47 during mid-day trading on Thursday, reaching $56.82. 36,041 shares of the company’s stock traded hands, compared to its average volume of 341,191. Andersons has a 12 month low of $47.57 and a 12 month high of $82.11. The stock has a market capitalization of $1.93 billion, a P/E ratio of 9.63 and a beta of 0.63. The business’s 50-day moving average price is $66.64 and its 200-day moving average price is $69.06. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.81 and a current ratio of 1.51.

Andersons Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 22nd. Stockholders of record on Thursday, October 1st were issued a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend was Thursday, October 1st. Andersons’s payout ratio is 15.44%.

More Andersons News

Here are the key news stories impacting Andersons this week:

• Positive Sentiment: The Andersons agreed to acquire Harvestone Low Carbon Partners for $915 million. The deal would add about 215 million gallons of annual ethanol capacity and expand its Renewables platform by more than 40%, strengthening its position in low-carbon fuels. The company expects the acquisition to be immediately accretive to earnings and cash flow. Acquisition announcement
• Positive Sentiment: Management expects Harvestone to contribute $225 million–$250 million in annual EBITDA and cited a goal of reaching $7 in earnings per share exiting 2028, giving investors a longer-term growth target. Harvestone contribution and EPS target
• Positive Sentiment: Third-quarter adjusted EPS was $1.38, beating the $1.11 analyst consensus. The company reported record quarterly net income, while Renewables posted record pretax income of $63 million, supported by efficient operations and higher co-product values. Third-quarter results
• Neutral Sentiment: About half of the $915 million purchase price is attributed to expected 45Z and 45Q tax-credit cash flows. Those credits support the deal’s economics, but investors may watch their realization and the acquisition’s execution. Acquisition details
• Negative Sentiment: Quarterly revenue of $2.83 billion fell short of analysts’ $2.97 billion estimate, tempering the earnings beat despite year-over-year growth. Quarterly earnings report

Wall Street Analyst Weigh In

ANDE has been the subject of a number of recent analyst reports. BMO Capital Markets lifted their price objective on Andersons from $75.00 to $90.00 and gave the company an “outperform” rating in a research report on Wednesday, August 5th. Weiss Ratings upgraded Andersons from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, October 8th. Deutsche Bank Aktiengesellschaft set a $110.00 target price on shares of Andersons in a research note on Tuesday, August 4th. Finally, Wall Street Zen upgraded Andersons from a “buy” rating to a “strong-buy” rating in a report on Saturday, October 17th. One analyst has rated the stock with a Strong Buy rating and four have issued a Buy rating to the stock. According to data from MarketBeat.com, Andersons presently has a consensus rating of “Buy” and an average target price of $95.00.

About Andersons

The Andersons, Inc (NASDAQ: ANDE) is an agribusiness company that provides products and services supporting the agricultural supply chain. Founded in 1947 and headquartered in Maumee, Ohio, the company serves farmers, agricultural retailers, manufacturers, and other customers primarily in North America.

The company’s Trade segment merchandises and manages the movement and storage of grains and other agricultural commodities. Its operations include grain elevators, commodity trading, logistics, and related services that connect producers with domestic and international markets.

Through its Ethanol segment, The Andersons produces renewable fuels and markets co-products such as distillers grains and corn oil.