Bunge Global Expected to Report Lower Q1 Earnings Amid Market Challenges

Chesterfield, Missouri-based Bunge Global SA (BG) is an integrated global agribusiness and food company. With a market cap of $9.3 billion, Bunge operates through various segments, including Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. The company is set to release its first-quarter earnings before the market opens on Wednesday, Apr. 23.

Analysts Predict Significant Earnings Decline

Ahead of this release, analysts expect Bunge to report a non-GAAP profit of $1.27 per share, reflecting a steep decline of 58.2% from $3.04 per share reported in the same quarter last year. Historically, Bunge has surpassed Wall Street’s bottom-line estimates in two out of the last four quarters; however, it fell short of projections on two other occasions.

Full Fiscal Year Projections

For the entire fiscal year 2025, Bunge is anticipated to deliver a non-GAAP EPS of $7.89, a decrease of 14.2% from $9.19 in fiscal 2024. Looking ahead to fiscal 2026, analysts forecast a recovery, with earnings projected to rebound by 12.2% year-over-year to $8.85 per share.

Recent Stock Performance

Bunge’s stock has declined by 30.6% over the past 52-week period, significantly lagging behind the Consumer Staples Select Sector SPDR Fund’s (XLP) 6.3% gains and the S&P 500 Index’s (SPX) 4.7% returns during the corresponding time frame.

Impact of Q4 Results on Stock Value

Bunge’s share prices fell 6.9% following the announcement of disappointing Q4 results on February 5. The company reported a 9.3% year-over-year decline in net sales to $13.5 billion, accompanied by a significant drop in adjusted net income, which plummeted by 45.9% to $295 million. Bunge’s adjusted EPS of $2.13 missed analysts’ expectations by 7.4%. The company’s operating cash flows also faced a considerable hit, decreasing by 42.6% year-over-year to a total of $1.9 billion in fiscal 2024.

Analyst Outlook Remains Encouraging

Despite the recent underperformance, analysts maintain a moderately bullish outlook on Bunge. The consensus rating for BG is “Moderate Buy,” with four of the seven analysts covering the stock advocating for a “Strong Buy” and three recommending a “Hold.” Furthermore, the mean price target of $86.50 suggests a potential upside of 16.4% from current price levels.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For additional details, please view the Barchart Disclosure Policy here.

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