Headquartered in Chesterfield, Missouri, Bunge Limited (BG) is a global leader in agribusiness and food innovation, connecting farmers to consumers through sustainable supply chain solutions. With a market cap of $11.4 billion, Bunge operates across diverse segments, including agribusiness, edible oil products, and milling, providing essential ingredients that nourish millions worldwide. The company is set to release its Q4 earnings before the market opens on Wednesday, Feb. 5.
Ahead of the event, analysts expect Bunge to report a profit of $2.30 per share, down 37.8% from $3.70 per share reported in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on one other occasion. Its EPS of $2.29 for the last reported quarter surpassed the consensus estimates by 5.1%. Bunge Global's quarterly performance was driven by strong execution in agribusiness.
Analysts expect Bunge’s EPS to decline 31.6% to $9.35 in fiscal 2024, up from $13.66 in 2023.
Shares of Bunge Global have declined 13.6% over the past 52 weeks, substantially underperforming the S&P 500 Index’s ($SPX) 22% gains and the Consumer Staples Select Sector SPDR Fund’s (XLP) 5% returns during the same time frame.
Bunge Global has underperformed the broader market this year, driven by challenges in the agricultural commodities sector, including weaker demand and pricing pressures. Geopolitical uncertainties further weighed on global trade, exacerbating market headwinds. Following the release of its Q3 earnings on Oct. 30, the stock declined by 2.1%. Its refined and specialty oils segment saw a 21% drop in profit despite higher volumes, raising doubts about sustained growth.
Bunge also updated its 2024 guidance, projecting adjusted EPS of $9.25 while outlining mixed performance across its segments, higher tax rates, increased capital expenditures, and reduced income due to divestitures.
Analysts’ consensus opinion on BG stock is bullish, with a “Strong Buy” rating overall. Out of seven analysts covering the stock, five advise a “Strong Buy” rating and two give a “Hold.” BG’s average analyst price target is $104.62, indicating a potential upside of 27.6% from the current levels.
