The time is fast ticking for Olam International to release its 2016 third quarter results.
However, analysts covering the stock of the commodity giant are reaching a somewhat positive consensus on their guidance to investors and shareholders of Olam.
Out of 7 analysts polled by FT, 3 among them advised investors to hold their position on the stock.
It should however be noted that last year before Olam International posted a SGD4.81 billion (Singaporean Dollar) revenue in the second quarter, all 7 analysts advised a hold position on the stock.
The latest guidance also shows that Olam International is gaining less confidence among analysts who are watching the stock. Last year, its gross revenue rose by 45.36% to SGD28.23 billion. The company will not be meeting this target this year from the look of things.
While the third quarter result will be reported tomorrow, analysts have already forecast that Olam International’s full year revenue will fall to SGD20.44 billion.
Olam International Limited is a Singapore-based company, which is engaged in sourcing, processing, packaging and merchandising of agricultural products. The Company operates through five segments: Edible Nuts, Spices and Vegetable Ingredients; Confectionery and Beverage Ingredients; Industrial Raw Materials; Food Staples and Packaged Foods, and Commodity Financial Services.
The Edible Nuts, Spices and Vegetable Ingredients segment includes cashews, peanuts, almonds, spices and vegetable ingredients, sesame and beans (including pulses and peas). The Confectionery and Beverage Ingredients segment includes cocoa and coffee. The Industrial Raw Materials segment includes cotton, wool, wood products and special economic zone project.
The Food Staples and Packaged Foods segment includes rice, sugar and natural sweeteners, dairy products, packaged foods and grains. The Commodity Financial Services segment includes market making, risk management solutions and commodity funds management.
Olam International is active in Nigeria with its major investment in import and export of commodities and cash crops from Nigeria.