Bunge Limited

Analysts are bullish on Bunge (BG - Snapshot Report), which has exceeded the consensus estimate by an average of 68% over the past 5 consecutive quarters. The company recently announced that it satisfied a regulatory condition that allowed it to close its acquisition of Corn Products International.

Bunge Limited is a global agribusiness and food company with integrated operations. The company manufactures fertilizer and animal feed for farmers; originates oilseeds and grains from the world's primary growing regions and transports them to customers worldwide; crushes oilseeds to make meal for the livestock industry and oil for the food processing, food service and biofuel industries; produces bottled oils, mayonnaise, margarines and other food products for consumers; and mills wheat and corn for food processors, bakeries, brewers and other commercial customers.

Recent Events

The company recently announced that it satisfied a regulatory condition that allowed it to close its acquisition of Corn Products International.

BG added that the transaction remains subject to the satisfaction of other customary closing conditions, including receipt of non-U.S. regulatory clearances and the approval by the shareholders of both companies. Bunge expects the transaction to close in the fourth quarter of 2008.

Growth in the Second Quarter

In late July, the company reported second-quarter earnings per share were $4.73, beating analysts' estimates by 97% and more than tripling the year-ago result. Revenues jumped 73% to $14.36 billion from $8.30 billion in 2007.

BG surpassed the consensus estimate by an average of 68% over the past 5 consecutive quarters.

More Growth Projected for the Future

Bunge hiked its full year earnings guidance to a range of $11.60 to $11.90 from $9.35 to $9.65.

Wall Street has full-year 2008 earnings pegged at $11.58 per share, up from last month’s $11.42 and the two months-ago forecast of $9.58. For the following year, the consensus estimate of $11.29 rose from last month’s $10.86. The most accurate projections for 2008 and 2009 are much higher at $12.00 and $13.01, respectively.

Favorable Industry Comparison Include a Higher Income

Bunge is yielding about 1% right now, which is a competitive industry yield as virtually none of BG’s industry peers offer a dividend. The company’s return on equity (ROE) of 24% is high above the industry average of 3%. Bunge’s net margin of 3.1% exceeds the industry average of 3%.