A string of strong quarterly profits by ADM and Bunge likely continued in the first quarter despite surging crop costs and global supply chain disruptions triggered by Russia's invasion of Ukraine, analysts said ahead of earnings releases this week.
Reuters reports both companies capitalized on good oilseed and corn processing margins and heightened demand for the crops they ship around the world after the war cut off shipments from the region which surrounds the Black Sea, they said.
ADM, which reports results ahead of the market open on Tuesday, is expected to post first-quarter earnings of $1.41 per share, according to a consensus estimate from Refinitiv IBES, about in line with $1.39 a share in the same quarter a year earlier.
The consensus estimate for Bunge, which reports on Wednesday, is $2.86 per share, compared to a strong quarter a year earlier when robust margins and surging exports propelled earnings to $3.13 a share.
