Bunge Limited (NYSE: BG) reported Q1 EPS of $0.35, $0.35 worse than the analyst estimate of $0.70. Revenue for the quarter came in at $11.12 billion versus the consensus estimate of $8.9 billion.

• Q1 GAAP EPS of $0.31 vs. $1.60 last year, $0.35 vs $1.41 on an adjusted basis
• Agribusiness impacted by delayed farmer selling, shifting results to later in the year
• Expect solid earnings growth in 2017
• Combined Agri-Foods trailing four quarter ROIC of 7.2%; 0.2 points over WACC
• Trailing four quarter operating cash flow of ~$1.8 billion; trailing four quarter adjusted funds from operations of $1.3 billion

Outlook

Thomas Boehlert, Chief Financial Officer, stated, "In Agribusiness, we expect improvement in 2017 from last year's results. South American farmers have produced record bean and corn crops and have a significant percentage remaining to price. On-farm storage has increased in parts of Brazil over the years, but capacity is well below current production estimates. In Oilseeds, product demand is strong and in line with our long term projections. While soy processing margins have been good in the U.S., they remain below our expectations in South America. We expect margins to improve as farmer selling picks up in the coming months and customers' replenish pipelines; however, as a result of this delay, we are adjusting our full-year 2017 EBIT range to $800 million to $925 million, weighted to the second half of the year.

"In Food & Ingredients, we expect Edible Oils to continue to show strong year-over-year improvement in 2017 on higher volumes and margins. However, due to the weaker than expected start in Milling and anticipation of continued soft consumer demand from the tough economic environments in Brazil and Mexico, we are adjusting our full-year 2017 EBIT range to $245 million to $265 million, weighted to the second half of the year due to seasonality.

"In Sugar & Bioenergy, we expect 2017 EBIT of $100 million to $120 million. Our outlook for year-over-year improvement reflects sugar prices hedged at higher levels and higher cane yields and crush, which assumes normal seasonal weather patterns. Similar to past years, results will be seasonally weak until the second half of the year.

"In Fertilizer, we expect 2017 EBIT of approximately $25 million. Results will be seasonally weak until the second half of the year.

"Additionally, we have reduced expected capex spend by $50 million to a range of $700 million to $750 million, of which approximately $150 million is related to sugarcane planting, mill maintenance and productivity projects."

For earnings history and earnings-related data on Bunge Limited (BG) click here.