Bunge Global SA shares tumbled 5.43% during intraday trading on Wednesday, as investors shrugged off better-than-expected second-quarter results and focused instead on a cautious forward outlook and rising capital spending plans.
The agricultural commodities giant reported second-quarter revenue of $24,041 million, comfortably above the IBES estimate of $22,817 million, and adjusted earnings per share of $2, topping the consensus estimate of $1.95. However, the company’s full-year adjusted EPS guidance of $9.25 to $9.75, while offering a midpoint above the $9.4 analyst consensus, was viewed as reflecting a more uncertain environment in the second half of the year.
During a conference call, Bunge executives flagged expectations of uncertainty in certain regions, particularly in the fourth quarter, as the operating environment remains complex. CFO John Neppl also noted that a strong market backdrop means there is a “good chance” the company will deploy more money into working capital through the back half of the year, adding to concerns about near-term profitability pressures.
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