Bunge Shares Dip Over 5% After Q1 Results: Details Here
Portfolio Pulse from Nabaparna Bhattacharya
Bunge Limited (NYSE:BG) shares fell over 5% after Q1 results were announced, with earnings per share of $3.04 beating expectations but revenue of $13.417 billion missing forecasts. The company maintained its full-year 2024 EPS outlook at approximately $9.00, below the $9.39 estimate. Bunge's agribusiness saw mixed results, and it continued to invest in growth projects and the integration with Viterra. Investors can also gain exposure to BG through First Trust Cons. Staples AlphaDEX (NYSE:FXG) and VanEck Agribusiness ETF (NYSE:MOO).
April 24, 2024 | 1:32 pm
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NEGATIVE IMPACT
Bunge Limited reported Q1 earnings with higher EPS than expected but missed on revenue forecasts, causing a 5% drop in share price. The company maintains its 2024 EPS outlook.
The drop in Bunge's share price following the earnings report indicates a negative short-term impact. Despite beating EPS estimates, the revenue miss and cautious outlook for the rest of the year likely contributed to investor disappointment.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
First Trust Cons. Staples AlphaDEX ETF, which includes exposure to Bunge, may see indirect impact from Bunge's Q1 earnings report and subsequent share price movement.
Given FXG's exposure to Bunge, the ETF could experience an indirect negative impact due to Bunge's share price decline. However, the effect might be diluted due to the diversified nature of the ETF.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
VanEck Agribusiness ETF, which includes Bunge in its holdings, may be indirectly affected by Bunge's Q1 performance and its share price decrease.
MOO, with Bunge among its holdings, might face an indirect negative impact from Bunge's earnings miss and share price decline. The diversified nature of MOO may mitigate the overall effect.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50