Bunge Limited (BG) sees solid growth ahead as evidenced by the company’s recent increase of its full-year 2008 guidance from a range of $7.10 to $7.40 per share to $9.35 to $9.65 per share. Wall Street is in agreement, pegging current estimates at $9.58 per share, versus last month’s $7.47. In addition to the promise of growth, Bunge will reward investors with income in the form of a 0.7% dividend yield, which is more than what is being paid by the other companies within BG’s industry group.

Company Description

Bunge Limited is a global agribusiness and food company with integrated operations. The company manufactures fertilizer and animal feed for farmers; originates oilseeds and grains from the world’s primary growing regions and transports them to customers worldwide; crushes oilseeds to make meal for the livestock industry and oil for the food processing, food service and biofuel industries; produces bottled oils, mayonnaise, margarines and other food products for consumers; and mills wheat and corn for food processors, bakeries, brewers and other commercial customers.

Bullish Forecasts

In late June, the company increased of its full-year 2008 guidance from a range of $7.10 to $7.40 per share to $9.35 to $9.65 per share.

Wall Street is in agreement, pegging current estimates at $9.58 per share, versus last month’s $7.47.

Increased Income

In addition to the promise of growth, Bunge will reward investors with income in the form of a 0.7% dividend yield, which is more than what is being paid by the other companies within BG’s industry group.

In late May, the company hiked its regular quarterly cash dividend from 17 cents per share to 19 cents. Bunge noted that the new dividend is payable on September 3, 2008 to shareholders of record on August 15, 2008.

Solid Growth Attributes

Bunge offers a return on equity (ROE) of 18%, which is ahead of the industry average of 15%.

In late April, the company reported first-quarter results, stating that it capitalized on strong global market conditions and generated outstanding operating results.

First-quarter earnings per share of $2.10 surged past the year-prior 5 cents and slammed the consensus estimate with a 94% positive surprise.

Results for the second quarter will be announced on July 24, 2008.

Content Courtesy: Zacks Investment Research

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