Bunge Limited (BG Quick QuoteBG - Free Report) saw strong results in 2021 as food has surged to the forefront globally during the pandemic. This Zacks Rank #1 (Strong Buy) has beat on the Zacks Consensus 7 quarters in a row.

Bunge is the world's leader in oilseed processing and a producer and supplier of specialty plant-based oils and fats. Headquartered in St Louis, it has 300 facilities located in more than 40 countries.

Another Beat in the Fourth Quarter

On Feb 9, Bunge reported its fourth quarter results and blew past the Zacks Consensus by $0.44. Earnings were $3.49 versus the Zacks Consensus Estimate of $3.05.

It was the 7th consecutive beat.

Bunge saw strong results across its operations from Agribusiness to Refined and Specialty Oils which saw record Q4 and full year results.

Expects Another Strong Year in 2022

Bunge was bullish with its outlook for 2022 even with such strong results in 2021.

It expects full year adjusted 2022 EPS of at least $9.50 per share, which would be the second highest operation performance in the company's recent history.

Agribusiness is expected to see a decline from a record 2021, primarily due to lower results in Merchandising and softseed crushing, which had been exceptionally strong in prior years.

Bunge isn't expecting the same magnitude of margin enhancing opportunities that they had in 2021, but they do see potential upside to their outlook if strong demand and tight commodity supplies continue.

In Refined and Specialty Oils, 2022 is expected to be up from last year, delivering another record year due to strong demand from food and fuel in their North American and European businesses.

In Milling, 2022 results are also expected to be up from the prior year driven by improved market conditions in Brazil.

Analysts Raise Earnings Estimates

The analysts liked what they heard. 2 analysts raised their earnings estimates since the earnings report, pushing up the 2022 Zacks Consensus Estimate to $10.44 from $10.16 before the report.

That's still an earnings decline from 2021, however, as Bunge made $12.93 last year.

Was 2021 peak earnings?

As you can see on the price and consensus chart, earnings are expected to decline over the next 2 years.

Image Source: Zacks Investment Research

But it has the Zacks #1 Rank of Strong Buy because none of the analysts cut estimates, they only raised for the full year. Earnings estimates are still going in the right direction: higher.

Too Hot to Handle?

Bunge shares are up 30.4% over the last year and have gained 8% in 2022, when many other stocks have been weak to start the year.

Shares are at 5-year highs.

Is it too hot to handle?

Image Source: Zacks Investment Research

Bunge trades with a forward P/E of 9.8, which is cheap.

It also pays a dividend, currently yielding 2.1%.

For those looking for a food play, Bunge is one to keep on the short list.