Bunge Stock Gains On Massive Q2 Beat; Boosts FY21 Adjusted EPS Outlook

Bunge Ltd BG reported second-quarter FY21 sales growth of 62.7% year-on-year, to $15.39 billion, beating the analyst consensus of $11.48 billion.
Net sales from the Agribusiness segment improved 68% to $11.65 billion, and Refined & Specialty Oils rose 50% to $3.2 billion.
The gross profit declined 39.8% Y/Y to $665 million.
Total segment EBIT amounted to $459 million, down 37.8% Y/Y.
The company held $464 million in cash and equivalents as of June 30, 2021.
Adjusted EPS of $2.61 beat the analyst consensus of $1.57.
"With an accelerating structural shift in demand for sustainable food, feed, and fuel, Bunge's position in the global agribusiness supply chain provides growing opportunity to partner with customers to meet their needs in this changing environment," said CEO Greg Heckman.
Outlook: Bunge sees FY21 adjusted EPS of at least $8.50 per share, versus the prior view of $7.50, versus the consensus of $7.82.
It estimates mid-cycle EPS of $7, an increase of $2 from the baseline provided at its Virtual Business Update Meeting on June 24, 2020.
Price action: BG shares are trading higher by 4.07% at $78.26 in premarket on the last check Wednesday.

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