Chesterfield, Missouri-based Bunge Global SA (BG) is an integrated global agribusiness and food company. With a market cap of $13.7 billion, Bunge operates through Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy segments. The agribusiness giant is expected to release its third-quarter earnings before the market opens on Wednesday, Oct. 30.
Ahead of the event, analysts expect Bunge to report a profit of $2.11 per share, down 29.4% from $2.99 per share reported in the year-ago quarter. The company has surpassed Wall Street’s adjusted EPS estimates in three of the past four quarters while missing on one other occasion. Its adjusted EPS for the last reported quarter declined 53.5% year-over-year to $1.73, missing the consensus estimates by 3.4%.
For fiscal 2024, analysts expect Bunge to report an adjusted EPS of $9.30, down 31.9% from $13.66 in fiscal 2023. In fiscal 2025, its EPS is expected to grow marginally to $9.32.
Shares of Bunge Global have declined 3.9% on a YTD basis, substantially underperforming the S&P 500 Index’s ($SPX) 21.9% gains and the Consumer Staples Select Sector SPDR Fund’s (XLP) 13.3% returns during the same time frame.
Shares of Bunge Global plummeted 8.1% and remained in red for the next four trading sessions after the release of its Q2 earnings on July 31. The company reported a 12% year-over-year dip in net sales, missing Wall Street’s estimates. This was primarily attributed to the headwinds experienced in its agribusiness segment. Although the company saw a substantial increase in volume, lower average prices affected its revenues adversely.
Moreover, price stabilization and the company's inability to reduce operating expenses led to a net margin contraction of 3.6%. This resulted in its net income to shareholders falling from $622 million in the year-ago quarter to $70 million, making investors jittery.
The consensus opinion on BG stock is strongly bullish, with an overall “Strong Buy” rating. Out of the seven analysts covering the stock, five recommend a “Strong Buy,” and two advise a “Hold” rating.
The mean price target of $112.88 suggests a potential upside of 16.4% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
