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Investing.com -- Bunge Global (NYSE:BG) stock surged 11% Wednesday, leading the S&P 500 gainers, after the agricultural commodities trader provided an updated outlook following its merger with Viterra that showed less earnings dilution than investors had feared.
The company recast its full-year 2025 adjusted earnings per share outlook to a range of $7.30 to $7.60, which includes the impact of its recent combination with Viterra. This compares to its previous guidance of approximately $7.75, which had excluded the Viterra merger that closed on July 2.
The new outlook reflects an expected second half adjusted EPS in the range of $4.00 to $4.25, accounting for the current margin environment and macro conditions. The company also announced changes to its reporting segments to align with its value chain operating structure following the merger.
"We are pleased to announce our new segmentation and supplemental volume reporting, which we believe provides investors with a clear understanding of the key drivers of our combined company’s results and value chains," said Greg Heckman, Bunge’s Chief Executive Officer.
Beginning with third quarter results, Bunge will present its business in four segments: Soybean Processing and Refining, Softseed Processing and Refining, Other Oilseeds Processing and Refining, and Grain Merchandising and Milling.
Morgan Stanley analyst Stevens Haynes noted: "We expect a positive response to Bunge’s guidance update for 2025 EPS (including Viterra) of ~$7.30-7.60 (vs. ~$7.75 excluding Viterra) which likely compares favorably to an admittedly wide range of expectations."
The minimal dilution from the merger appears to have surprised investors positively. At the midpoint of guidance, the dilution amounts to only about 4% despite the issuance of approximately 65 million new shares as part of the Viterra acquisition.
Bunge will report its third quarter 2025 results on November 5, when it plans to provide a more detailed outlook and discussion of market conditions.