Personal Finance
BG

Why Bunge Ltd Stock Soared Today

Pies made with Bunge pie shortening.

What happened

Shares of Bunge Ltd. (NYSE: BG) rose 10% on Wednesday after the agribusiness and food company released strong fourth-quarter 2016 results.

So what

Quarterly revenue grew 8.6% year over year, to $12.1 billion, and translated to 14.1% growth in adjusted earnings per share, to $1.70. Analysts, on average, were only expecting Bunge to report revenue of $11.4 billion and adjusted earnings of $1.57 per share.

Pies made with Bunge pie shortening.

IMAGE SOURCE: Bunge Ltd.

Bunge CEO Soren Schroder elaborated:

Bunge had a solid fourth quarter to end a challenging year. Higher Food & Ingredients and Sugar & Bioenergy results in 2016 reflect our team's hard work to drive structural improvements to increase the underlying competitiveness of our businesses. Agribusiness faced a very competitive global market environment, but finished strong.

Now what

Looking forward, Bunge CFO Thomas Boehlert also stated that the company's full-year 2017 outlook "remains largely consistent with the assumptions that we provided at our December investor day." More specifically, Bunge expects full-year earnings before interest and taxes (EBIT) to be $895 million to $1.05 billion in agribusiness, $270 million to $290 million at food and ingredients, $100 million to $200 million in sugar and bioenergy, and $30 million in fertilizer.

In the end, this was a strong performance for the company despite operating in a difficult industry environment. Management provided an encouraging reiterated outlook with no big surprises. So it's no surprise to see Bunge shares trading higher today.

10 stocks we like better than Bunge

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Bunge wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of February 6, 2017

Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .

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


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

In This Story

BG

Other Topics

Stocks

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More