Earnings Beat: Bunge Global SA Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
Bunge Global SA (NYSE:BG) shareholders are probably feeling a little disappointed, since its shares fell 2.1% to US$88.54 in the week after its latest full-year results. Bunge Global reported US$60b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$14.87 beat expectations, being 9.4% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Bunge Global
Taking into account the latest results, the eleven analysts covering Bunge Global provided consensus estimates of US$56.6b revenue in 2024, which would reflect a small 5.0% decline over the past 12 months. Statutory earnings per share are expected to plunge 38% to US$9.52 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$58.2b and earnings per share (EPS) of US$11.23 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.
It'll come as no surprise then, to learn that the analysts have cut their price target 5.9% to US$118. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Bunge Global at US$141 per share, while the most bearish prices it at US$90.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 5.0% annualised decline to the end of 2024. That is a notable change from historical growth of 11% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.5% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Bunge Global is expected to lag the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Bunge Global. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Bunge Global's future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Bunge Global going out to 2026, and you can see them free on our platform here..
Even so, be aware that Bunge Global is showing 1 warning sign in our investment analysis , you should know about...
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
