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What's in the Offing for Bunge Limited's (BG) Q2 Earnings?

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Bunge Limited (BG - Free Report) is scheduled to report second-quarter 2021 results, before the opening bell on Jul 28.

Q1 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 surpassed earnings estimates in each of the trailing four quarters, the average surprise being 380.4%.

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

Bunge Limited price-eps-surprise | Bunge Limited Quote

Q2 Estimates

The Zacks Consensus Estimate for second-quarter total sales fis pegged at $11.4 billion, suggesting growth of 21% year over year. The consensus mark for quarterly earnings currently stands at $1.59, indicating a decline of 59% from the prior-year quarter.

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 second-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 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 $8,960 million, indicating an improvement of 32% from the prior-year quarter’s revenues of $6,810 million. Volumes are expected to be at around 37,655 thousand metric tons.

The Zacks Consensus Estimate for the Refined and Specialty Oils’ revenues is pegged at $2,405 million, suggesting growth of 13% from the year-earlier quarter. Volumes are expected to be at around 2,325 thousand metric tons. The segment’s results in the quarter are likely to reflect the favorable market trends. North America refining is benefiting from recovery in foodservice and increased demand from the renewable diesel sector. Higher margins in the consumer business in Brazil as a result of tight supply and strong demand may have favored the second-quarter performance.

The Zacks Consensus Estimate for the Milling segment’s revenues is pegged at $402 million, indicating an improvement of 6% from the year-ago period. Volumes are expected to be at around 1,138 thousand metric tons.

The Zacks Consensus Estimate for Sugar & Bioenergy’ revenues is pegged at $31.2 million, suggesting growth of 20% from the year-earlier quarter. Volumes are expected to be at around 65 thousand metric tons.

What the Zacks Model Unveils

Our proven model does not predict an earnings beat for Bunge Limited this time around. 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. However, this is not the case here. 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 0.00%.

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 75% over the past year, compared with the industry's rally of 55.8%.

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Image Source: Zacks Investment Research

Other Stocks Poised to Beat Estimates

Here are some other Basic Materials stocks, which you may consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.

LyondellBasell Industries N.V. (LYB - Free Report) has an Earnings ESP of +9.93% and a Zacks Rank of 1, currently.

Celanese Corporation (CE - Free Report) has a Zacks Rank #2 and an Earnings ESP of +7.01%, at present.

Eastman Chemical Company (EMN - Free Report) has an Earnings ESP of +2.11% and a Zacks Rank #3, currently.