Bunge Limited Second Quarter Earnings Sneak Peek

Bunge Limited (NYSE:BG) will unveil its latest earnings on Thursday, July 26, 2012. Bunge is a global agribusiness and food company, operating in the farm-to-consumer food chain. It conducts its operations in three divisions: agribusiness, fertilizer, and food and ingredients.

Bunge Limited Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.41 per share, a decline of 20.8% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 10.5% versus last year to $6.41.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the first quarter, it reported net income of 69 cents per share against a mean estimate of $1.16. Two quarters ago, it beat expectations by 6 cents with profit of $1.65.

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A Look Back: In the first quarter, profit fell 60.3% to $92 million (57 cents a share) from $232 million ($1.49 a share) the year earlier, missing analyst expectations. Revenue rose 10.3% to $13.45 billion from $12.19 billion.

Wall St. Revenue Expectations: Analysts predict a rise of 9% in revenue from the year-earlier quarter to $15.79 billion.

Stock Price Performance: Between April 25, 2012 and July 20, 2012, the stock price fell $4.35 (-6.5%), from $67.44 to $63.09. The stock price saw one of its best stretches over the last year between February 2, 2012 and February 24, 2012, when shares rose for 16 straight days, increasing 18.7% (+$10.69) over that span. It saw one of its worst periods between May 9, 2012 and May 18, 2012 when shares fell for eight straight days, dropping 7.7% (-$4.98) over that span.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 26.4% over the last four quarters.

Heading into this earnings announcement, net income has dropped 48% on average for the last four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.94 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.89 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in current assets. Current assets increased 12.4% to $14.75 billion while liabilities rose by 9.6% to $7.62 billion.

Analyst Ratings: With five analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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