Analyst Actions: Bunge 2013 EPS Lowered at Credit Suisse Following "Weak" Q4

By Staff,

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Analysts at Credit Suisse have lowered their earnings estimates for agribusiness and food company Bunge Ltd. ( BG ). The firm has lowered its 2013 EPS estimate to $7 from $7.40.

"Bunge surprised on the negative side with a weak 4Q result (adjusted $0.57 vs us at $2.23) despite what seemed to be an ideal set-up for the company's global asset footprint," said Credit Suisse. "While competitors ADM and Cargill capitalized on strong North American soybean crush margins, high value soy exports, and the beginnings of a record South American crop, Bunge found itself stuck holding onto long positions on soy in a declining price environment."

The firm added that "given the severity of the drought, it is hard to find fault with the thinking behind the risk management strategy. But it does raise the question as to just how long a position Bunge had taken in the quarter and to what extend this constituted a "view" on price direction rather than just an economic decision on margin management."

Shares of BG are up 0.04% to $74.03 in afternoon trade, in the high end of a 52-week range of $57.10 - $80.99.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: BG

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