Archer-Daniels-Midland Beats In 2Q, Jefferies Maintains Hold

Jefferies & Company has published a research report on Archer-Daniels-Midland ADM after the company reported 2Q earnings of $1.14 that beat estimates of $0.77. In the report, Jefferies writes that "Generic ethanol operating profit margins fell almost 40% in F2Q11, but ADM's extremely favorable corn ownership position appears to have the vast majority, if not all, of this margin pressure. The result was a 135% increase in Bioproducts EBIT to $280M - twice what we and likely most on the Street had been expecting. Ag Services EBIT was also up big, or +180% to $426M. We had expected Ag Services EBIT to double, but it almost tripled on increased wheat, corn and soy export volumes." Jefferies maintains its Hold rating and $36 price target. Archer-Daniels-Midland closed yesterday at $32.67