The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Bunge crushed expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Bunge chalked up revenue of $16.45 billion. The six analysts polled by S&P Capital IQ predicted revenue of $13.69 billion on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $12.73 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.65. The 12 earnings estimates compiled by S&P Capital IQ predicted $1.54 per share. GAAP EPS of $1.65 for Q4 were 15% lower than the prior-year quarter's $1.95 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 4.5%, 220 basis points worse than the prior-year quarter. Operating margin was 1.8%, 140 basis points worse than the prior-year quarter. Net margin was 1.5%, 90 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $12.63 billion. On the bottom line, the average EPS estimate is $1.23.
Next year's average estimate for revenue is $60.34 billion. The average EPS estimate is $6.77.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 786 members out of 834 rating the stock outperform, and 48 members rating it underperform. Among 202 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 192 give Bunge a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Bunge is outperform, with an average price target of $73.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.