2023-05-03 07:25:55 ET
Bunge Limited ( NYSE: BG ) stock edged higher in premarket action on Wednesday after topping Q1 earnings expectations.
For the first quarter, the St. Louis-based agricultural company notched $3.26 in earnings per share on $15.33B in revenue. Both figures beat the analyst expectations set at $3.24 and $15.18B, respectively. Management noted that agribusiness revenue declined year over year after lapping particularly strong performance in 2022, while Refined and Specialty Oils results were “higher in all regions reflecting favorable demand trends and effective management of supply chains” during the quarter.
“Our operating approach enabled us to continue helping our customers at both ends of the value chain to navigate critical challenges amidst fluctuations in global supplies and consumer behavior,” CEO Greg Heckman said. “Bunge is investing in innovation and resources to support both farmers and end customers. During the first quarter, we announced targeted but important actions to further improve our business capabilities, including entering collaborations to develop next generation seeds to meet the growing need for more sustainable crops, launching regenerative agriculture programs and acquiring a state-of-the art vegetable oil refinery in the US.”
Management reiterated its full-year adjusted EPS forecasts of “at least $11 per share” against the $11.81 consensus. Agribusiness revenue is expected to remain below the prior year performance while Refined and Specialty Oils full-year results are expected to be up from the prior outlook given better than anticipated performance in Q1. In Milling, full-year results are now expected to be down from our prior forecast reflecting a more challenging than expected first quarter. That said, management noted that the outlook for agribusiness could shift.
“Depending on how market conditions evolve over the remainder of the year there could be upside to our segment outlook,” the company said .
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Bunge notched earnings beat on resilient demand, supply chain improvement