| Bear of the Day: Bunge (BG) - Bear of the Day | |
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Bunge Limited (BG) is a leading agribusiness and food company with integrated operations in about 40 countries. It is a global leader in oilseed processing, and grain & oilseed marketing. The company has four business segments 1) Agribusiness, 2) Sugar & Bioenergy 3) Food & Ingredients and 4) Fertilizers.
The results were negatively impacted by $80 million in mark-to-market charges related to their North American oilseeds business and hedge bunker fuel positions related to their ocean freight contracts.
The results were also hurt by soybean processing performance in China. While demand grew in the country, industry capacity also increased, leading to margin pressures. Foreign exchange volatility also impacted results.
These negatives more than offset the benefits the company derived from a large harvest in North America. Disappointing results led to a steep sell-off in shares.
Downward Revisions
After poor results, analysts have revised their estimates for the company sharply downwards. Current Zacks Consensus Estimates for the current and the next fiscal year are $6.45 per share and $6.56 per share respectively, down from $7.00 per share and $7.57 per share, 7 days ago.
The Bottom Line
As the company generates most of its revenues from its Agribuinesss segment, it remains vulnerable to commodity price weakness and foreign exchange volatility. Zacks Industry Rank for Agricultural Products Industry is currently 216 out of 265 (bottom 18%) . There is no Zacks Rank # 1 (Strong Buy) stock in this industry. It is safer for investors to avoid this industry for the time being.
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Bunge is based in United states of america. Bunge is listed in United States of America. Its market capitalisation is US$ 13.5 billions as of today (€ 12.3 billions). Its stock quote reached its highest recent level on January 06, 2023 at US$ 99.95, and its lowest recent point on October 10, 2024 at US$ 96.06. Bunge has 140 400 000 shares outstanding. |