Bunge Limited Earnings: The Streak is Broken

Bunge Limited (NYSE:BG) reported its results for the third quarter. Bunge is a global agribusiness and food company, operating in the farm-to-consumer food chain. It conducts its operations in three divisions: agribusiness, fertilizer, and food and ingredients.

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Bunge Limited Earnings Cheat Sheet

Results: Net income for Bunge Limited rose to $297 million ($1.92 per share) vs. $140 million (89 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter.

Revenue: Rose 10.2% to $17.2 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Bunge Limited fell short of the mean analyst estimate of $2.15 per share. It beat the average revenue estimate of $15.79 billion.

Quoting Management: Alberto Weisser, Bunge’s Chairman and Chief Executive Officer, stated, “Bunge delivered significantly stronger third-quarter results than in the prior year. Agribusiness operations posted solid results, and Food & Ingredients and Fertilizer showed improved performance from the challenging first half of the year. Results in Sugar & Bioenergy on a comparable basis were higher than last year, but below the potential of this business. Our continued sugarcane planting and other cost reduction efforts which will result in increased sales volumes and lower unit costs will help us realize this potential. We are making steady progress, and remain optimistic for a strong performance in the 2013 crop year.”

Key Stats:

Last quarter’s profit increase ends a four-quarter streak of year-over-year profit drops. In the second quarter, net income fell 13.3% from the year earlier, while the figure fell 60.3% in the first quarter, 15.6% in the fourth quarter of the last fiscal year and 34% in the third quarter of the last fiscal year.

Revenue has risen for the last four quarters. Revenue increased 4.2% to $15.09 billion in the second quarter. The figure rose 10.3% in the first quarter from the year earlier and climbed 29.2% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now come in under analyst forecasts for three quarters in a row. It missed the mark by 14 cents in the second quarter and by 47 cents in the first quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from $2.18 a share to $2.30 over the last ninety days. The average estimate for the fiscal year is $6.38 per share, up from $6.27 seven days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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