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Bunge (NYSE:BG) shares were lower in premarket trading on Wednesday as fourth-quarter sales missed expectations by a wide margin.
The St. Louis-based agricultural company posted a narrow profit margin on the bottom line, but failed to the top line as sales slipped year over year. Net sales of $16.66 billion missed analysts’ estimate of $18.2 billion, as declines in agribusiness sales offset strength in refined oils.
“Throughout the year, we made progress in executing on our strategy to strengthen and expand our core business while positioning ourselves to benefit long-term from growing demand for food, feed and renewable fuels,” said CEO Greg Heckman. “Looking into 2023, we expect the favorable market environment we experienced last year to continue.”
Going forward, management expects to earn “at least $11 per share,” suggesting a downside to the analyst consensus of $12.18. In agribusiness, full-year results are forecast to be “slightly” down from the prior year, while the refined and specialty oils segment is expected to be “modestly down from the prior-year record.”
“While we don’t forecast the same magnitude of margin improvement opportunities that we captured during 2022, we see upside potential in our outlook if strong demand and tight global supplies of commodities continue throughout the year,” the company said.
Bunge (BG) shares fell 2.89% in pre-market trade.
Drill down into the details of the results.
