Bunge Limited Third Quarter Earnings Sneak Peek

Bunge Limited (NYSE:BG) will unveil its latest earnings on Thursday, October 25, 2012. 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.

Bunge Limited Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $2.11 per share, a rise of more than twofold from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $2.20. Between one and three months ago, the average estimate moved down. It has been unchanged at $2.11 during the last month. Analysts are projecting profit to rise by 8.1% compared to last year’s $6.27.

Past Earnings Performance: Last quarter, the company missed estimates by 14 cents, coming in at net income of $1.20 per share against an estimate of profit of. In the first quarter, the company also missed expectations.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 13.5% in revenue from the year-earlier quarter to $17.73 billion.

A Look Back: In the second quarter, profit fell 13.3% to $274 million ($1.78 a share) from $316 million ($2.02 a share) the year earlier, missing analyst expectations. Revenue rose 4.2% to $15.09 billion from $14.49 billion.

Stock Price Performance: Between August 23, 2012 and October 19, 2012, the stock price had risen $5.39 (8.3%), from $64.68 to $70.07. The stock price saw one of its best stretches over the last year between February 2, 2012 and February 24, 2012, when shares rose for 16 straight days, increasing 18.7% (+$10.69) over that span. It saw one of its worst periods between May 9, 2012 and May 18, 2012 when shares fell for eight straight days, dropping 7.7% (-$4.98) over that span.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 33.9% in the third quarter of the last fiscal year, 29.2% in the fourth quarter of the last fiscal year and 10.3% in the first quarter before increasing again in the second quarter.

Heading into this earnings announcement, net income has dropped 30.8% on average for the last four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.69 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.94 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 27% to $9.67 billion while assets rose 10.9% to $16.36 billion.

Analyst Ratings: There are four out of seven analysts surveyed (57.1%) rating Bunge a buy.

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

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