Bunge Global (BG) Q4 Earnings Top Estimates, Sales Dip Y/Y
Bunge Global SA BG reported fourth-quarter 2023 adjusted earnings of $3.70 per share, which surpassed the Zacks Consensus Estimate of $2.79. The bottom line improved 14% year over year.
Including one-time items, the company posted earnings per share of $4.18 in fourth-quarter 2022 compared with $2.21 in the year-ago quarter.
Net sales were $14.94 billion in the quarter under review, down 10.3% from the year-ago quarter. The top line beat the Zacks Consensus Estimate of $14.64 billion.
Cost of sales was $13.7 billion in the fourth quarter, down 13.6% from the prior year. Gross profit rose 53.3% year over year to $1.25 billion. Selling and administrative expenses were $495 million, which increased 26.9% year over year.
Adjusted total segment operating profit was $837 million, reflecting year-over-year growth of 13.1% from $740 million in the year-ago quarter. Total segment operating margin was 5.6% compared with 4.4% in the fourth quarter of 2022.
Bunge Global SA Price, Consensus and EPS Surprise
Bunge Global SA price-consensus-eps-surprise-chart | Bunge Global SA Quote
Segmental Performance
Agribusiness: The segment’s sales were $10.96 billion compared with the prior-year quarter’s $11.98 billion. Adjusted operating profit for the segment improved 7.9% year over year to $639 million.
Refined & Specialty Oils: The segment’s sales fell 14.9% year over year to $3.51 billion in the fourth quarter. The segment reported an adjusted operating profit of $212 million in the quarter compared to the year-ago quarter’s $222 million. Improved performances in North and South America were more than offset by declines in Europe and Asia.
Milling: The segment’s sales decreased 13.6% year over year to $412 million in the fourth quarter. The segment reported an adjusted operating profit of $30 million in the quarter against an adjusted operating loss of $10 million in the fourth quarter of 2022. Improved results were driven by South America operations reflecting higher margins due to lower wheat costs and a more favorable pricing environment.
Sugar & Bioenergy: Net sales fell 32.8% year over year to $43 million. Adjusted operating profit was $39 million in the quarter, marking a 7.1% year-over-year decline, as lower ethanol prices offset higher sugar prices.
Financial Position
Cash and cash equivalents were $2.6 billion as of the fiscal 2023 end compared with $1.1 billion as of the end of fiscal 2022. At the end of 2023, its long-term debt was $4.1 billion, up from $3.3 billion as of 2022-end. Cash inflow from operating activities was $3.31 billion in 2023 against a cash outflow of $5.55 billion in the prior year.
2023 Performance
For 2023, Bunge Global’s adjusted earnings were $13.66, which beat the Zacks Consensus Estimate of $12.82. Earnings were 2% lower than the prior year. Including one-time items, the company’s earnings were $14.87 per share in 2023 compared with
$10.51 in 2022.
Total revenues fell 11.4% year over year to $59.54 billion, which surpassed the Zacks Consensus Estimate of $59.24 billion.
2023 Outlook
The company projects adjusted earnings per share of around $9.00 in 2024.
Price Performance
Shares of Bunge Global have lost 6.1% over the past year compared with the industry's fall of 2.7%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Bunge Global currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation CRS, Cameco Corporation CCJ and Alpha Metallurgical Resources, Inc. AMR. The three companies mentioned above flaunt a Zacks Rank #1 (Strong Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $3.96 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 29.8% in a year.
The Zacks Consensus Estimate for Cameco’s 2024 earnings is pegged at 72 cents per share, indicating an increase of 188% from the prior year’s reported number. CCJ shares have gained 68.8% in a year.
Alpha Metallurgical Resources has an average trailing four-quarter earnings surprise of 9.6%. The Zacks Consensus Estimate for AMR’s 2024 earnings is pegged at $43.05 per share. Earnings estimates have moved 48% north in the past 60 days. AMR shares rallied 132% last year.
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