The 10-second takeaway
For the quarter ended June 30 (Q2), Bunge missed slightly on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Margins shrank across the board.
Bunge notched revenue of $15.49 billion. The eight analysts polled by S&P Capital IQ expected a top line of $15.80 billion on the same basis. GAAP reported sales were 2.7% higher than the prior-year quarter's $15.09 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.74. The 12 earnings estimates compiled by S&P Capital IQ averaged $1.33 per share. Non-GAAP EPS of $0.74 for Q2 were 38% lower than the prior-year quarter's $1.20 per share. GAAP EPS of $0.75 for Q2 were 58% lower than the prior-year quarter's $1.78 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 4.0%, 40 basis points worse than the prior-year quarter. Operating margin was 1.5%, 30 basis points worse than the prior-year quarter. Net margin was 0.9%, 90 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $16.83 billion. On the bottom line, the average EPS estimate is $2.26.
Next year's average estimate for revenue is $63.08 billion. The average EPS estimate is $6.77.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 769 members out of 816 rating the stock outperform, and 47 members rating it underperform. Among 155 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 146 give Bunge a green thumbs-up, and nine 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 $82.15.
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