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What's in the Offing for Bunge Limited's (BG) Q1 Earnings?

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Bunge Limited (BG - Free Report) is scheduled to report first-quarter 2021 results, before the opening bell on May 4.

Q1 Estimates

The Zacks Consensus Estimate for Bunge Limited’s total sales for the first quarter of 2021 is pegged at $10.2 billion, suggesting growth of 11% year over year. The consensus mark for quarterly earnings currently stands at $1.55, indicating a turnaround from a loss of $1.34 per share reported in the prior-year quarter.

Q4 Performance

In the last reported quarter, Bunge Limited’s earnings and revenues not only beat the respective Zacks Consensus Estimate but also improved year over year. The company has a trailing four-quarter earnings surprise of 277.5%, on average.

Bunge Limited Price and EPS Surprise Bunge Limited Price and EPS Surprise

Bunge Limited price-eps-surprise | Bunge Limited Quote

Factors to Note

The company has been benefiting from efforts to drive operational performance, and optimizing its portfolio and focusing on cost management. This, in turn, might have favored the first-quarter performance.  

Bunge Limited recently announced that starting first-quarter 2021, it has changed its segment reporting to align with its new value chain operating structure. The company will now report Core Segment results as follows: Agribusiness, which includes processing and merchandising; Refined and Specialty Oils; and Milling. It will continue to report Corporate and Other results and Non-core Segment results, which is made up of Sugar & Bioenergy.

The Agribusiness segment has been gaining from a favorable market environment. Particular strength has been witnessed in North America with higher oilseed crush and elevation margins. This is likely to get reflected in the segment’s results in the to-be-reported quarter. In Grains, North American operations, which has been gaining from from strong export demand, might have driven the to-be-reported quarter’s performance. The Zacks Consensus Estimate for the Agribusiness segment’s revenues is currently pegged at $7,437 million compared with the prior-year quarter’s $6,329. Volumes are expected to improve 2%.

The Zacks Consensus Estimate for the Refined and Specialty Oils’ revenues is pegged at $2,580 million, suggesting growth of 11% from the year-earlier quarter. Volumes are expected to grow 2%. Higher margins in the consumer business in Brazil as a result of tight supply and strong demand and increased demand from the renewable diesel sector in North America may have favored the first-quarter performance.

The Zacks Consensus Estimate for the Milling segment’s revenues is pegged at $424 million for the quarter to be reported, indicating an improvement of 2% from the year-ago period. Volumes are expected to improve 1%.

What the Zacks Model Unveils

Our proven model conclusively predicts an earnings beat for Bunge Limited this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Bunge Limited is +4.99%.

Zacks Rank: The company currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Price Performance

Shares of Bunge Limited have gained 118.5% over the past year, compared with the industry's rally of 83.7%.

Other Stocks Poised to Beat Estimates

Here are some other companies in the basic materials space you may want to consider as our model shows that these too have the right combination of elements to post earnings beat this quarter:

Westlake Chemical Corporation (WLK - Free Report) has a Zacks Rank #2 and an Earnings ESP of +0.64%, at present.

CF Industries Holdings, Inc. (CF - Free Report) , currently a Zacks #3 Ranked stock, has an Earnings ESP of +21.6%.

GrowGeneration Corp. (GRWG - Free Report) has an Earnings ESP of +3.70% and a Zacks Rank of 3, currently.

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