ANDE - The Andersons declined 13% after Q1 reports

2023-05-03 11:43:47 ET

Andersons ( NASDAQ: ANDE ) highlights Q1 revenue of $3.88B, a marginal drop of 3% from last year, missing estimates by $60M.

Trade reported pretax income of $39M and adjusted pretax income of $24M, a record first quarter. Trade segment benefited from strong elevation margins in its assets, and excellent merchandising results across the portfolio.

Renewables produced a pretax loss of $83M due to a previously announced non-cash impairment and adjusted pretax income attributable to The Andersons of $6M.

Nutrient & Industrial (formerly Plant Nutrient) reported a pretax loss of $10M on a slow start to the planting season. Nutrient & Industrial Ag Businesses Declined as slow customer engagement on declining prices.

Company reported a net loss attributable of $15M, or $0.44 EPS and adjusted income $7M, or non-GAAP EPS of $0.20, beats estimates by $0.02 . Adjusted EBITDA was $55M for the quarter.

President and CEO Pat Bowe commented, "Once again, our Trade business led the way for the quarter. The team continues to execute well and we are seeing positive results from our base business, as well as, recent growth investments. The Renewables team was faced with lower ethanol crush margins to start the quarter but showed improvement over 2022 on an adjusted basis. The Nutrient & Industrial business was faced with declining fertilizer prices and deferred customer purchasing in the quarter. In April, customers have engaged and prices have firmed a bit as fieldwork began in our service geography. While some of the typical first quarter business will shift into Q2, we do not expect that all the business will be recovered."

Contributors comment: ' The Andersons: 50% Upside On Business Improvements, Solid Industry Fundamentals ' and ' The Andersons: Positioned For High Growth In North American Agriculture '

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