Bunge, Inc. (BG) just reported an awesome quarter, beating the Zacks Consensus Estimate by almost 25%. With bean prices on the upswing and a bullish growth projection, Bungee is a momentum stalwart.
Fourth-Quarter Results
Revenue for the period was up 22% from last year to $1.27 billion. Earnings also came in strong at $1.99, 50% ahead of the Zacks Consensus Estimate.
The company’s largest unit, Agribusiness, was its strongest, with income jumping to $377 million from $65 million. Its Sugar and Bio Energy segment, however, was the laggard, posting a loss of $56 million for the quarter on weak sugar production out of Brazil due to drought.
It’s fertilizer segment also saw a huge rebound on higher prices, producing income of $1 million, up from a loss of $174 million last year.
Financial Profile
Bunge used the good quarter to strengthen its balance sheet, with cash and equivalents up $25 million to $578 million while its total debt fell $1.067 billion to $2.551 billion.
Estimates
Bunge announced on its earnings call that it will no longer be providing guidance, but with a good quarter in hand, estimates will most likely advance in the near future. As it stands, the next-year estimate looks very bullish, pegged at $5.55, a 46% growth projection.
Not only is Bunge’s share price upwardly mobile, it also has value, trading with a forward PEG Ratio (PE/Growth) of .27, well below the traditional value benchmark of 1.
2-Year Chart
On the chart, BG actually traded lower off the good quarter, but a long-term trend line is close at hand to provide support. Take a look below.
Read the Jan 14 BG article here
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Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the new Zacks Momentum Trader Service.
BUNGE LTD (BG): Free Stock Analysis Report
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