Why Agribusiness, Food Company Bunge Saw Shares Trading Higher Today

Bunge Limited BG reported a third-quarter (Q3) 2023 sales decline of 15.1% year-on-year to $14.227 billion, missing the analyst consensus of $15.32 billion.

Net sales from the Agribusiness segment declined to $10.08 billion from $11.74 million, and Refined & Specialty Oils decreased to $3.6 billion from $4.3 billion.

In Agribusiness, higher Processing results were more than offset by lower results in Merchandising.

Higher Refined and Specialty Oils results driven by strength in North America.

Adjusted EPS of $2.99 beat the analyst consensus of $2.50.

Gross profit rose 17.7% Y/Y to $1.05 billion. Adjusted total segment EBIT amounted to $676 million from $691 million.

As of quarter end, the St. Louis, Missouri-based company held $2.17 billion in cash and equivalents. Its long-term debt stood at 3.967 billion. 

Outlook: Bunge raised the fiscal year 2023 adjusted EPS outlook to $12.50 from the previous $11.75, against the consensus of $12.42.

Bunge expects to incur capital expenditures of $1 billion - $1.2 billion.

Price Action: BG shares are trading higher by 5.07% at 107.36 on the last check Thursday.