Stock of the Day

July 12, 2022

Bunge Global (BG)

$116.61
+$1.13 (+1.0%)
Market Cap: $22.19B

About Bunge Global

Bunge Global SA operates as an agribusiness and food company worldwide. It operates through four segments: Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. The Agribusiness segment purchases, stores, transports, processes, and sells agricultural commodities and commodity products, including oilseeds primarily soybeans, rapeseed, canola, and sunflower seeds, as well as grains comprising wheat and corn; and processes oilseeds into vegetable oils and protein meals. This segment offers its products for animal feed manufacturers, livestock producers, wheat and corn millers, and other oilseed processors, as well as third-party edible oil processing and biofuel companies for biofuel production applications. The Refined and Specialty Oils segment sells packaged and bulk oils and fats that comprise cooking oils, shortenings, margarines, mayonnaise, renewable diesel feedstocks, and other products for baked goods companies, snack food producers, confectioners, restaurant chains, foodservice operators, infant nutrition companies, and other food manufacturers, as well as grocery chains, wholesalers, distributors, and other retailers. This segment also refines and fractionates palm oil, palm kernel oil, coconut oil, and shea butter, and olive oil; and produces specialty ingredients derived from vegetable oils, such as lecithin. The Milling segment provides wheat flours and bakery mixes; corn milling products that comprise dry-milled corn meals and flours, wet-milled masa and flours, and flaking and brewer's grits, as well as soy-fortified corn meal, corn-soy blends, and other products; whole grain and fiber ingredients; die-cut pellets; and non-GMO products. The Sugar and Bioenergy segment produces sugar and ethanol; and generates electricity from burning sugarcane bagasse. Bunge Global SA was founded in 1818 and is headquartered in Chesterfield, Missouri.

Today's Trend

Bunge Global SA (NYSE: BG) shares are under pressure despite a strong second-quarter report, as investors appear focused on the modest outlook increase, uneven segment performance and accounting-related volatility.

  • Second-quarter adjusted EPS rose to $2.00 from $1.31 a year earlier, while revenue nearly doubled to $24.04 billion. Strong soybean and softseed processing and refining margins drove the improvement. Bunge Raises Outlook on Soybean, Softsead Outperformance
  • Management raised fiscal 2026 adjusted EPS guidance to $9.25-$9.75 from $9.00-$9.50, citing stronger processing trends and Viterra-related synergies running ahead of plan. Bunge forecasts 2026 adjusted EPS
  • Bunge completed the $2 billion share-repurchase program associated with the Viterra transaction, including approximately $250 million of repurchases during the quarter. Zacks Research also upgraded BG from “hold” to “strong-buy.” BG Q2 Earnings Call Highlights Viterra Growth
  • Analysts’ consensus price target implies substantial potential upside, but the target itself may be a weak near-term catalyst. More important for sentiment is whether earnings-estimate revisions continue improving. Wall Street Analysts See a 28.32% Upside in Bunge Global
  • The earnings beat was not decisive across all benchmarks: $2.00 EPS exceeded the $1.97 consensus cited by some data providers but fell short of Zacks’ $2.03 estimate. The raised guidance midpoint also remains close to analyst expectations, limiting the upside surprise.
  • Investors may be concerned about a $1.67-per-share negative mark-to-market timing impact and weaker results in grain merchandising, milling, sugar and parts of the European soybean chain. These issues may have overshadowed the headline growth and contributed to the stock’s decline after earnings. Bunge Global Slides After Earnings as Strong Quarter Meets Tempered Outlook
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