Is ANDE's earnings trend improving for 2025?

**The Andersons, Inc. (ANDE) is not currently forming a bullish earnings trend for 2025.** Here's an analysis based on the available data:

1. **Recent Performance**: The company's gross profit fell from $218 million to $213 million, primarily due to reduced ethanol margins. This indicates a decline in profitability, which is not a favorable sign for future earnings trends.
2. **Dividend Announcement**: The company announced a dividend of $0.195 per share, with a dividend yield of 1.9%. While this may be attractive to investors, it is important to consider the sustainability of the dividend. The payout ratio is currently high, which could suggest that the company is retaining less earnings to grow the business.
3. **Earnings Coverage**: The company has a history of paying dividends with little fluctuation, and the dividend has shown a compound annual growth rate (CAGR) of approximately 5.9% over the past decade. However, the sustainability of the dividend is dependent on the company's earnings. With a decline in gross profit, there is a risk that the dividend may not be sustainable in the future.
4. **Peer Comparison**: The company is undervalued against its industry peers on all valuation metrics. This could suggest that the company may be a good investment at its current price. However, the fear of investors may be driven by the company's negative revenue outlook for the 2024 financial year, which may impact earnings trends for 2025.
5. **Industry Outlook**: The company has been highlighted in an industry outlook article, which also includes other companies like West Fraser Timber, CalMaine Foods, and Hydrofarm. This suggests that the company may be well-positioned in its industry, but further analysis is needed to determine if this translates to improved earnings trends for 2025.

In conclusion, while there are some positive aspects to the company's profile, such as its undervaluation and dividend announcement, the decline in gross profit and the sustainability of the dividend are major concerns. Without a clear indication of improving earnings trends, it is difficult to conclude that ANDE's earnings trend is improving for 2025. Investors should closely monitor the company's financial performance and any signs of improvement before making investment decisions.