Bunge Faces Profit Decline Ahead of Q1 Earnings Report

Profit and market cap insights on Bunge Global SA as EPS expectations drop ahead of Q1 earnings release.

Date: 10-04-2025

AI Rating: 4

The recent report highlights significant concerns regarding Bunge Global SA's earnings forecasts, which can have substantial implications on investor sentiment and stock prices. Analysts project a non-GAAP Earnings Per Share (EPS) of $1.27 for the upcoming first quarter, reflecting a steep drop of 58.2% year-over-year from $3.04, a clear indicator of challenges facing the agribusiness sector. Furthermore, the forecast for the full fiscal 2025 is equally troubling, with EPS expected to decline by 14.2% compared to fiscal 2024, suggesting a trend of deteriorating profitability.

These substantial declines in EPS and the expected net income drop of 45.9% year-over-year reveal underlying issues that could erode investor confidence. Although analysts remain cautiously optimistic with a “Moderate Buy” rating and a mean price target suggesting upside potential, the company's recent performance—highlighted by a 30.6% stock price decline over the last 52 weeks—paints a picture of underlying volatility that doesn't align well with its overall projected earnings recovery in fiscal 2026.

Additionally, the drop in operating cash flows by 42.6% to $1.9 billion indicates cash management challenges that could affect future operational flexibility. The observed miss of adjusted EPS expectations by 7.4% in the recent quarterly results adds to the apprehension surrounding the company's ability to meet market expectations consistently.

Overall, considering these factors, BungeGlobal SA presents substantial risks for investors in a short-term holding outlook. Given the backdrop of expected declines in profitability alongside a bearish performance track, caution is advised.

Stocks: BG