Did Bunge Beat Earnings Estimates in 1Q16?
Bunge Beat Its 1Q16 Earnings Estimates: Strong Start in 2016
Earnings surpassed estimates
On April 28, Bunge Limited (BG) reported its financial results for 1Q16 ending March 31, 2016. Later in the day, management had a conference call to discuss the results. Bunge beat analysts’ earnings estimates of $0.79 by 78%. The adjusted EPS (earnings per share) came in around $1.41 for the first quarter—a fall of 11% compared to $1.58 in fiscal 1Q15. We’ll discuss the earnings results later in this series.
Earnings were consistent with guidance
The earnings for 1Q16 were in line with management’s expectations. The company expected earnings to decline in 1Q16. Earnings fell 11% year-over-year. They expect the earnings to bounce back in 2H16. This would make the earnings positive for the year.
Peers’ earnings
Bunge’s peers in the industry including Ingredion (INGR) and Archer Daniels Midland (ADM). Ingredion reported earnings growth of 33% in its recently reported 1Q16 on April 28. Archer Daniels Midland will be reporting its 1Q16 results on May 3. Its earnings are expected to decline 39%.
The FlexShares Morningstar Global Upstream Natural Resources Index ETF (GUNR) invests 1.4% of its portfolio in Bunge. The PowerShares Dynamic Food & Beverage Portfolio (PBJ) invests 2.6% of its holdings in Ingredion.
What will we discuss in this series?
In this series, we’ll discuss Bunge’s 1Q16 performance, its revenue decline, and how specific segments contributed to its performance. We’ll also discuss what Bunge expects for 2016. Then, we’ll discuss how much it returned to shareholders in 1Q16 and its recent acquisition. We’ll end the series with the stock price reaction to its earnings, Bunge’s moving averages, and Wall Street analysts’ recommendations for the stock.
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