Monsanto Perks on Guidance
Monsanto
(MON)
shares jumped Tuesday after the company increased second-quarter and fiscal-year guidance on better-than-expected results generated by its seed and traits businesses.
Shares are up $2.42, or 4%, to $62.52.
Monsanto, the agribusiness company based in St. Louis, cited higher revenue for corn and soybean traits in the U.S., increased corn-seed sales in Europe and Africa, and herbicides outside the U.S. It increased its earnings estimate to $1.37 a share, or $1.38 a share on an ongoing basis, excluding certain items for the second quarter ended Feb. 28. Analysts surveyed by Thomson First Call predicted earnings of $1.17 per share.
For the fiscal year ending Aug. 31, the company now expects earnings of $2 to $2.05, excluding items, compared with the $1.85-$2 range previously expected. First Call consensus is for earnings of $2.05. Including items, Monsanto expects earnings of 85 cents to 97 cents for the year.
The company excludes items such as liabilities related to Monsanto's bankrupt spinoff
Solutia
, expenses from acquisitions and increased generic and branded competition for the company's Roundup herbicide.
Last week, Monsanto completed its acquisition of seed company
Seminis
for more than $1 billion in cash and $400 million in debt. Monsanto also announced that it would acquire select agricultural genomics assets of
Icoria
(ICOR)
, a biotechnology research company, for $6.75 million in cash, and other considerations. Last month it agreed to acquire
Emergent Genetics
for $300 million.
Monsanto reports second-quarter earnings on April 6.