BG - Bunge Limited - $1.28 per share - Analysts only expected 89 cents per share

Bunge is benefiting from a boom in fertilizer demand and strong agribusiness. This year's earnings estimates have jumped 39 cents to $4.77 per share over the past 90 days. Earnings are slated to rise another 14.1% next year. The chart is looking great the stock is trading near new highs after a nice breakout in September. There is plenty of support near current levels. Full Analysis Bunge Limited (BG) engages in the agriculture and food business. It operates in three segments: Agribusiness, Fertilizer, and Food Products. The Agribusiness segment engages in the purchase, storage, transport, processing, and sale of agricultural commodities that include grains and oilseeds, such as soybeans, sunflower seeds, rapeseed or canola, wheat, and corn; and commodity products, including oilseed meal, hull products, and crude and further processed oils. The Food Products division offers edible oil products and milling products for food processors, foodservice companies, and retail outlets. This segment provides bottled, packaged and bulk oils, shortenings, margarine, and mayonnaise and various products derived from the vegetable oil refining process. In mid-September, the company said it agreed to acquire a Brazilian sugarcane mill and ethanol production plant from the Tenorio Group for an undisclosed sum. This purchase marks the company's entry into the sugar and sugar-based ethanol production businesses. The mill, which started operating last year, is expected to mill as much as 1.6 million metric tons of sugar in the next harvest. In late-July, BG said its second-quarter profits soared on huge fertilizer demand and strong agribusiness results. Net income increased to $168 million, or $1.28 per share, from $30 million, or 25 cents per share, a year earlier. Analysts only expected 89 cents per share. Sales rose 65% to $9.92 billion from $6 billion. Revenue from Bunge's agribusiness, which handles and processes grains and oilseeds, exports sugar from Brazil and produces biofuels, jumped 68% and profits from the division increased by 74%. Fertilizer revenues more than doubled as soybean farmers rushed to plant soybeans amid a climate of higher prices and in anticipation of increased costs later this year. Profit from the segment quadrupled to $157 million. Overall volumes increased by 34% to 35.4 million metric tons from 31.4 million. The company proceeded to raise its guidance for the full year. Bunge now expects to earn $630 million to $650 million, or $4.86 to $5.02 per share, which includes an estimated net gain of $30 million, or 23 cents per share, related to expected gains on sales of assets somewhat offset by restructuring and impairment charges. The company had previously forecast earnings of $590 million to $610 million, or $4.56 to $4.71 per share. "We expect solid performances in the second half of the year in our agribusiness and fertilizer segments, which should more than offset weaker results in edible oils," said Alberto Weisser, chairman and chief executives. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home