Bunge Global SA, the leading agribusiness and food company, witnessed a significant 5.39% decline in its stock price during pre-market trading on Wednesday. This pre-market plunge came after the company reported disappointing fourth-quarter earnings and provided a muted outlook for the current fiscal year, citing geopolitical uncertainties as a major factor hampering visibility.
The company's adjusted earnings per share for the fourth quarter stood at $2.13, falling short of analysts' expectations of $2.24 and marking a substantial 42% decrease compared to the same period last year. The lower-than-expected results were primarily attributed to a global glut in crop prices, which weighed on Bunge's margins and processing results, particularly in its core Agribusiness segment.
Furthermore, Bunge Global SA projected full-year adjusted earnings per share of around $7.75 for 2025, missing the consensus estimate of $8.71. The company's CEO, Greg Heckman, cited heightened geopolitical uncertainty as a key factor limiting forward visibility, likely alluding to the ongoing trade tensions between the United States and China, as well as the potential for tariffs on agricultural products.