Will Bunge Limited Bounce Back in the Upcoming 3Q15?

Bunge Limited (BG), on October 29, 2015, will be reporting its third quarter results for the fiscal year 2015. Through its subsidiaries, Bunge operates as a worldwide agribusiness and food company. It has its headquarters in White Plains, New York. Its peers in the industry include Archer Daniels Midland (ADM), Ingredion (INGR), and B&G Foods (BGS). Archer Daniels Midland will also be reporting its third-quarter results on November 3. Ingredion and B&G will be reporting their third quarter results for the fiscal year 2015 on October 29 and October 27, respectively.

The company trades on the NYSE (New York Stock Exchange) under the ticker BG. The shares fell by 5% on the day of last quarter earnings release. The shares have been falling since then, trading in the range of $68–$77 following the company’s ongoing disappointing performance in the last few quarters. The shares fell almost 15% this year. It closed high at $77.95 on October 21, 2015. They reported a year-to-date return of -14.26%.

Archer Daniels Midland, Ingredion, and B&G also trade on the NYSE. They closed at $48.52, $91.61, and $36.40 on October 21, respectively. The iShares S&P MidCap 400 Value ETF (IJJ) invests 0.9% of its portfolio in Ingredion. The Market Vectors Agribusiness ETF (MOO) invests 3.02% of its portfolio in Bunge. It reported a year-to-date return of -7.63% as on October 21.

Cargill Inc, Bunge’s competitor in the private sector, on October 7, reported its quarterly results. Cargill had a strong quarter, reporting a 20% quarterly profit of $512 million, bouncing back from its $51 million loss in its previous quarter. This puts immense pressure on its peers like Bunge and Archer Daniels Midland, who will be reporting their upcoming quarterly results soon.

Bunge is a company buys, sells, stores, and transports oil-seeds and grains to serve customers worldwide. They process oil-seeds to make protein meal for animal feed and edible oil products for commercial customers and consumers. The company also produces sugar and ethanol from sugarcane, mills wheat, corn, and rice to make ingredients used by food companies, and sells fertilizer in South America. It operates in five segments:

• Agribusiness
• Edible Oil Products
• Milling Products
• Sugar and Bioenergy
• Fertilizer

Please note that what used to be the Food and Ingredient segment is now divided into Edible Oil Products and Milling Products.

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Browse this series on Market Realist:

• Part 2 - Bunge Limited’s Disappointing Performance in 2Q15
• Part 3 - Bunge’s Earnings Missed Consensus Estimates in 2Q15
• Part 4 - Bunge Limited Management’s Expectations for the Second Half of 2015