Bunge Limited (BG) is a global agribusiness and food company with headquarters in White Plains, New York. It will report the results for 2Q16 ending June 30 before the Market opens on July 28. Its stock has fallen by 2% since its last quarter earnings release.
Bunge reported its fiscal 1Q16 earnings results on April 28. The stock rose 3% with earnings beating estimates by 78%. Bunge’s strong start to 2016 benefitted its stock. Bunge’s shares have gained at an impressive rate in the last few months. They rose by as much as 35% at one point in 2016.
Bunge’s impressive 4Q15 results also benefited the stock with 24% earnings growth. The stock started rising after its 4Q15 earnings were released on February 11. It increased at least 28% as of July 18, 2016.
On July 5, Bunge announced that it would be selling 45% of its stake in its Vietnam crush operations to Wilmar. Read Why Did Bunge Sell Its Stake in Its Vietnam Operations? to learn more about this joint venture. The joint venture news didn’t come out well. The stock fell by 1.3% and closed at $57.16 on the day.
Peers’ stock performances
Peers Archer Daniels Midland (ADM) and Ingredion (INGR) have risen by 21% and 38%—compared to Bunge’s fall of 10% so far in 2016. Archer Daniels Midland, Ingredion, and Bunge closed trade at $44.25, $132.84, and $61.15 on July 18, respectively.
Bunge accounts for ~3.0% of the VanEck Vectors Agribusiness ETF (MOO). MOO invests around 30% of its holdings in the agricultural chemical sector and 18% in the food and beverage sector. MOO has returned ~8% year-to-date. It also invests 6.4% in Archer Daniels Midland and 7.6% in Monsanto (MON)—an agricultural chemical company based in Missouri. Bunge also accounts for ~1% of the First Trust Large Cap Value Opportunities AlphaDEX ETF (FTA).
In this series, we’ll discuss the estimates and analysts’ projections for revenue and earnings for 2Q16. We’ll see how much Bunge returned to its shareholders. We’ll also discuss Wall Street analysts’ target price and recommendations. At the end of the series, we’ll see how Bunge compares to its peers’ key moving averages.
Let’s start with Bunge’s performance in 1Q16.