Why Food Processing Company Archer-Daniels-Midland Shares Are Sinking Today
Portfolio Pulse from Lekha Gupta
Shares of Archer-Daniels-Midland Company (NYSE:ADM) fell after the company placed its CFO on administrative leave and revised its FY23 outlook. The move follows an investigation into accounting practices in its nutrition segment, prompted by a request from the SEC. ADM is cooperating with the SEC and has appointed Ismael Roig as interim CFO. The company now expects adjusted EPS above $6.90, below the consensus of $7.28, and has withdrawn its nutrition segment outlook. ADM will also delay its Q4 earnings release and Form 10-K filing. ADM shares dropped 20.2% to $54.44.
January 22, 2024 | 4:24 pm
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Archer-Daniels-Midland's stock fell due to the CFO being placed on leave amid an SEC investigation into accounting practices, a lowered FY23 EPS outlook, and the withdrawal of its nutrition segment outlook.
The negative impact on ADM's stock is due to the combination of governance concerns following the CFO's leave, the SEC investigation, and the lowered earnings outlook, which are significant factors that investors consider when assessing a company's financial health and management stability. The withdrawal of the nutrition segment outlook and the delay in earnings release further contribute to uncertainty and potential lack of investor confidence in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100