Bunge Earnings Preview: Analysts Expect Rising Revenue, Falling EPS
Bunge (NYSE: BG) unveils its next round of earnings this Thursday, October 27, 2011. Here's Benzinga's essential guide to Bunge's third quarter earnings report.
Earnings and Revenue:
Analysts are looking ahead to a positive EPS of $1.69/share and revenues of $14.32 billion. Bunge's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of $2.26/share on revenues of $11.66 billion. We'll have to wait for Thursday to see if Bunge reports a decline in EPS and a boost in revenue from the year-ago quarter, as analysts are predicting.
Here's how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q2 | Q1 | Q4 | Q3 |
| EPS Estimate | $1.47 | $1.29 | $1.59 | $1.51 |
| EPS Actual | $1.78 | $1.49 | $1.99 | $2.26 |
Stock Performance:
At last check, shares of Bunge were trading at $57.79. Since January 1st, shares of Bunge have declined 10.9%. For a full 12 months, the return has declined by 5%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.
- Long-term shareholders are already wary of 12-month losses prior to the announcement
Average Stock Rating:
The average rating by analysts for Bunge is a Moderate Buy. The strength of this rating has risen over the past three months.
Competitors:
Wondering how some of the other consumer staples companies are doing? Here are a few of Bunge's peers in that sector.
- Archer Daniels Midland Company (NYSE: ADM): Hold with a $0.58 recent quarter EPS
- Corn Products International (NYSE: CPO): Moderate Buy with a $1.10 recent quarter EPS
- Darling International (NYSE: DAR): Moderate Buy with a $0.44 recent quarter EPS
The agriculture/products company's industry has seen price/earnings growth of 1.4% during the current fiscal year.
Finally, a description of the company's main areas of operation: 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.
Take Action:
Now that you have reviewed all the numbers, be ready to move if the upcoming Bunge earnings report has any surprises. Also, come back to Benzinga after the announcement for a full recap and a guide to your next steps.
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