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.
Adjusted earnings were $1.24 per share, about 21% short of the Zacks Consensus Estimate of $1.57 per share. The company has missed in three out of last four quarters, with an average quarterly surprise of negative 24%
Falling Estimates
After poor results, analysts have revised their estimates for the company sharply downwards. Zacks Consensus Estimates for the current and the next fiscal year are now $5.15 per share and $6.23 per share respectively, down from $5.74 per share and $6.75 per share, 30 days back.
The Bottom Line
As the company generates most of its revenues from its Agribusiness segment, it remains vulnerable to weak agricultural commodity prices, decline in global demand and foreign exchange volatility. Zacks Industry Rank for Agricultural Products Industry is currently 248 out of 265 (bottom 6%) . There is no Zacks Rank # 1 (Strong Buy) or # 2 (Buy) stock in this industry. It is safer for investors to avoid this industry for the time being.
Want the latest recommendations from Zacks Investment Research? Today, you can download7 Best Stocks for the Next 30 Days.Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
BUNGE LTD (BG): Free Stock Analysis Report
To read this article on Zacks.com click here.