NASDAQ$ANDE

Andersons Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported fairly comparable results to the previous year, driven by strong performance in Renewables and improvement in Nutrient & Industrial's agricultural product lines, but offset by a challenging comparison in Trade.

The Andersons reported a net income attributable to the company of $6 million, or $0.16 per diluted share, with an EBITDA of $51 million. The Renewables segment doubled its 2023 results due to great operating performance in ethanol plants, while Nutrient & Industrial showed good improvement in its agricultural product lines. Trade faced a tough comparison against last year's record first quarter but still posted an above-average result.

  • Renewables segment doubled its 2023 results with strong ethanol plant operations.
  • Nutrient & Industrial segment experienced good improvement in agricultural product lines.
  • Trade segment faced a tough comparison against a record prior year but remained above average.
  • Company is actively pursuing growth opportunities across all business segments, including capital projects and acquisitions.

Headline financials

Total Revenue

$2.72B

Previous: $3.88B-30.0%
EPS

$0.16

Previous: $0.20-20.0%
EBITDA

$51.4M

No prior period
Adjusted EBITDA

$51.2M

Previous: $55.3M-7.4%
Agribusiness Pretax Income

$2.54M

No prior period
Agribusiness Adjusted EBITDA

$29.1M

No prior period
Renewables Pretax Income

$24.3M

No prior period
Renewables Adjusted EBITDA

$33.6M

No prior period
Pretax Income Attributable to Co.

$6.9M

No prior period
Adjusted Pretax Income Attributable to Co.

$6.6M

No prior period
Net Income Attributable to Co.

$5.58M

No prior period
Adjusted Net Income Attributable to Co.

$5.6M

No prior period
Capital Expenditures

-$26.8M

Previous: -$25.5M-5.1%
Free Cash Flow

-$21.2M

Previous: -$40.2M+47.3%
Net Income

$5.58M

Previous: -$14.8M+137.8%
Operating Income

-$15.7M

Previous: -$82.6M+80.9%
Gross Profit

$128M

Previous: $148M-13.3%
Total Assets

$3.26B

Previous: $4.1B-20.5%

Revenue & EPS history

Andersons · Revenue · Quarterly

$2.72B

Q1 2024-30%vs Q1 2023
Beat estimate in 4 of 14 quarters(29%)
ActualEstimate

Revenue by segment

Andersons · $868M total across 1 segment · Q3 2023

  • Renewables
    $868M+6.5%

Forward guidance

The company anticipates continued growth through capital projects, acquisitions, and strategic partnerships, particularly focusing on renewable energy and lower-carbon commodities. They expect a favorable ethanol margin environment, especially in eastern plants, and anticipate strong demand in the Nutrient & Industrial segment pending improved planting conditions.

Tailwinds

  • Longer-term capital projects to lower the carbon intensity of ethanol plants are expected to result in positive financial results under the Inflation Reduction Act.
  • Continued growth in volume merchandised by the renewable diesel feedstock team.
  • Partnerships with large consumer products companies to source lower-carbon commodities from growers.
  • Recent acquisition of Reed and Perrine expected to result in geographic expansion of the Turf business.
  • Favorable ethanol margin environment, especially at the eastern plants.

Headwinds

  • Market sluggishness due to farmers' reluctance in a lower-price environment.
  • Softer global demand for U.S. crops.
  • Return of carry in the wheat markets.
  • Refinery delays have compressed current margins for renewable diesel feedstocks.
  • Spring application is delayed in core geographic areas due to wet and cold weather.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-1.6%

Avg return

Earnings day

-0.6%

Avg return

5 days after

+0.6%

Avg return

30 days after

44%

30 / 68 earnings

Positive

+17.3%

Q4 2024

Best reaction

-25.7%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-14.2%-9.7%-8.2%
Q4 2025-3.6%-3.8%-0.9%
Q3 2025+4.6%+9.9%+7.8%
Q1 2025-10.1%+2.8%-0.8%
Q4 2024+17.3%+10.1%+3.8%
Q3 2024-4.0%+8.3%+3.9%
Q2 2024-0.3%-0.6%+3.7%
Q1 2024-9.0%-5.5%-10.6%
Q4 2023+3.7%-2.7%+4.0%
Q3 2023-13.5%-7.8%-2.5%
Q2 2023+2.2%+8.6%+5.2%
Q1 2023-10.9%-16.2%-12.0%
Q4 2022+13.7%+17.9%+3.5%
Q3 2022+3.6%+6.0%+5.1%
Q2 2022+14.1%+5.4%+3.3%
Q1 2022-25.7%-24.7%-25.0%
Q4 2021+2.8%+0.9%+16.2%
Q3 2021+0.8%+7.3%-2.1%
Q2 2021+1.1%+5.3%+14.7%
Q1 2021-1.9%+2.5%+9.2%
Q4 2020+2.2%-4.6%+6.4%
Q3 2020-16.7%-18.8%+3.3%
Q2 2020+11.7%+17.2%+23.2%
Q1 2020-15.7%-6.9%-9.3%
Q4 2019-11.8%-14.4%-29.6%
Q3 2019+10.6%+9.2%+24.3%
Q2 2019+3.1%+3.6%-9.3%
Q1 2019-10.6%-9.5%-16.0%
Q4 2018+8.1%+4.6%-0.5%
Q3 2018-11.1%-10.0%-13.2%
Q2 2018+14.6%+13.9%+14.6%
Q1 2018-5.3%-5.4%+0.9%
Q4 2017+15.0%+15.0%+13.3%
Q3 2017-6.7%-16.9%-14.1%
Q2 2017-0.7%-4.8%-7.0%
Q1 2017-9.0%-10.4%-1.6%
Q4 2016+5.8%+6.1%+4.0%
Q3 2016-4.1%-8.0%+8.1%
Q2 2016+1.1%+4.4%+6.7%
Q1 2016-11.3%
Q4 2015-14.3%
Q3 2015-8.5%
Q2 2015+7.5%
Q1 2015-2.8%
Q4 2014-10.3%
Q3 2014-18.3%
Q2 2014+6.9%
Q1 2014-15.1%
Q4 2013-7.9%
Q3 2013-0.3%
Q2 2013+3.7%
Q1 2013-3.5%
Q4 2012-0.8%
Q3 2012+4.6%
Q2 2012+0.6%
Q1 2012-2.8%
Q4 2011-5.5%
Q3 2011+7.6%
Q2 2011+4.3%
Q1 2011+1.5%
Q4 2010-1.4%
Q1 2010-1.4%
Q4 2008-1.4%
Q3 2010-1.8%
Q3 2009-1.8%
Q2 2009+2.9%
Q2 2010+2.9%
Q4 2009+2.9%

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