Bunge Limited (BG) is a leading agribusiness and food company with integrated operations in about 40 countries. It is a global leader in oilseed processing, and grain & oilseed marketing. The company has four business segments 1) Agribusiness, 2) Sugar & Bioenergy 3) Food & Ingredients and 4) Fertilizers.

The company IPO’d in 2001 and has expanded though many significant acquisitions since then.
 
Disappointing Third Quarter Results
 
Adjusted EBIT for the quarter was $367 million, up from $316 million in the prior-year quarter, driven mainly by Agribusiness segment’s performance. However, agribusiness’ strength could not offset the weakness seen in other segments. Revenue for the quarter was $10.8 billion, down from $13.7 billion, a year ago.
 
Adjusted earnings were $1.24 per share, about 21% short of the Zacks Consensus Estimate of $1.57 per share. The company has missed in three out of last four quarters, with an average quarterly surprise of negative 24%
 
Falling Estimates
 
After poor results, analysts have revised their estimates for the company sharply downwards. Zacks Consensus Estimates for the current and the next fiscal year are now $5.15 per share and $6.23 per share respectively, down from $5.74 per share and $6.75 per share, 30 days back.
 
The Bottom Line
 
As the company generates most of its revenues from its Agribusiness segment, it remains vulnerable to weak agricultural commodity prices, decline in global demand and foreign exchange volatility. Zacks Industry Rank for Agricultural Products Industry is currently 248 out of 265 (bottom 6%) . There is no Zacks Rank # 1 (Strong Buy) or # 2 (Buy) stock in this industry. It is safer for investors to avoid this industry for the time being.
 

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