Monsanto Q3 Profit Up, Beats Analysts’ Estimate (MON)
Agricultural biotechnology company, Monsanto (NYSE: MON) reported a better than expected earnings for its fiscal third quarter. The Company said that its profits turned out better than expectations mainly due to strong growth in sales for the period.
Monsanto’s net income stood at $937 million, or $1.74 a share, up from $692 million, or $1.28 a share, a year ago. Analysts surveyed by Reuters estimated earnings of $1.60 a shares for the fiscal third quarter.
A warm winter proved to be a fertile season for the company, as it witnessed largest corn crop in 75 years. The U.S. Department of Agriculture estimates that American farmers will harvest about 48 million tons of corn this season in order to meet growing demand from emerging markets.
Commenting on the results, Monsanto’s CEO, Hugh Grant said “As I look to 2013 and beyond …I am confident as our momentum is now validated with sustained business results and I believe the opportunity ahead for our customers, our business and our owners is significant.”
For the period reported, company’s seeds business saw sales soar by 18% to $3.1 billion- which is a record volume. Strong demand emanating from Eastern Europe to Latin America pushed up the gross margins by18% to about $2 billion. Among all crops, corn and soy bean witnessed a biggest increase in sales, (35% and 15% respectively).
Monsanto’s agricultural productivity business, which includes revenue from products like Roundup weed killer, saw a sales growth of 14% while its gross profit soared 28%.
Company’s quarterly sales leaped 17 % to $4.2 billion.
Monsanto maintained its full-year profit guidance. According to the company, full-year earnings are estimated between $3.65 and $3.70 a share. The Company also announced that in 2013, earnings should rise by about 15%.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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