NASDAQ$ANDE

Andersons Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported mixed results with record renewables performance offset by currency losses and seasonal weakness.

The Andersons reported net income of $10 million, or $0.28 per diluted share, and adjusted net income of $5 million, or $0.13 per diluted share. Record pretax income in Renewables of $47 million was offset by Trade segment losses due to currency issues in Egypt. The company expects full-year adjusted EBITDA to achieve previous expectations of $350-$375 million.

  • Renewables reported record Q3 pretax income of $47 million.
  • Trade segment earnings were negatively impacted by a $19 million pretax loss in Egypt due to currency issues.
  • Nutrient & Industrial segment showed year-over-year improvements despite a seasonally slow period.
  • The company acquired ACJ International, a pet food ingredient supplier, which contributed positively to results.

Headline financials

Total Revenue

$3.64B

Previous: $4.22B-13.8%
EPS (adj)

$0.13

Previous: $0.50-74.0%
Adjusted EBITDA

$70.3M

No prior period
Capital Expenditures

-$109M

Previous: -$72.2M-50.5%
Free Cash Flow

-$99M

Previous: -$35.5M-178.9%
Net Income

$9.71M

Previous: $36.7M-73.6%
Operating Income

$6.5M

Previous: $21.9M-70.4%
Gross Profit

$158M

Previous: $164M-3.7%
Cash & Equivalents

$418M

Previous: $141M+197.0%
Total Assets

$3.59B

Previous: $4.42B-18.8%

Revenue & EPS history

Andersons · Revenue · Quarterly

$3.64B

Q3 2023-13.8%vs Q3 2022
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 expects to achieve its previously communicated full-year adjusted EBITDA outlook of $350-$375 million.

Tailwinds

  • Ethanol crush margins are expected to remain strong.
  • Assets are well-positioned to accumulate, condition, and store large quantities of grain.
  • Expect drying income due to receipts of higher moisture corn.
  • Trade is also receiving increased storage rates including Variable Storage Rates (VSR) in wheat.
  • Merchandising focus will continue to be on serving customers and opportunistic arbitrage.

Headwinds

  • Currency liquidity issues being experienced by customers in Egypt.
  • Rail service interruption impacted volumes for approximately one month.
  • Economic conditions
  • Weather conditions
  • Regulatory conditions

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 Q3 2023

Historical avgQ3 2023

-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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