Bunge Limited ( NYSE: BG ) stock slid on Wednesday as wide misses on second quarter earnings estimates overshadowed a bullish profit forecast.
For the earnings report released on Wednesday, the Missouri-based agribusiness posted non-GAAP EPS of $2.97, coming up $0.23 short of expectations. Meanwhile a 16.5% jump in revenue came up a significant $710M below the bar set by analysts ahead of the earnings report.
Shares of Bunge ( BG ) fell 5.07% in premarket trading on the results.
However, CEO Greg Heckman remained bullish on the full-year prospects for the business, raising forecasts.
“In the face of significant market shifts, our team successfully delivered another quarter of year-over-year earnings improvement in our core segments,” he said. “We are confident in our ability to successfully navigate volatility and effectively deploy capital, while continuing to help our customers on both ends of the value chains find solutions to the opportunities and challenges they face.”
Management said the company now expects annual adjusted earnings of at least $12 per share, up $0.50 from prior forecasts. Bunge also introduced a new earnings framework of about $11 per share by the end of 2026 alongside $3.3B in capital expenditure and M&A investments over that span.
Full year results in refined and specialty oils as well as milling segments are anticipated to be “significantly higher” than the prior year. However, agribusiness is expected to decelerate slightly from a “particularly strong” 2021. A $1.25B share repurchase program through 2026 was also authorized.
Read more on the similarly bullish forecast offered by Archer-Daniels-Midland .
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Bunge stock slips despite raised profit forecast