Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, January 9, 2015

Article Excerpt

MONSANTO CO., $119.04, New York symbol MON, sells technology-based agricultural products, such as genetically modified seeds, to farmers, grain processors and food companies. It also sells weed- and pest-control products. In the first quarter of its 2015 fiscal year, which ended November 30, 2014, Monsanto earned $243 million, down 34.0% from $368 million a year earlier. Earnings per share fell 27.5%, to $0.50 from $0.69, on fewer shares outstanding. Without unusual items, earnings per share declined 29.9%, to $0.47 from $0.67, but that still beat the consensus forecast of $0.35. Sales fell 8.7%, to $2.9 billion from $3.1 billion, but that also beat the consensus forecast of $2.8 billion. Seed sales (which account for 56% of Monsanto’s total) fell 3.3%, as weaker demand for corn and cotton seeds offset higher soybean seed sales. Meanwhile, strong price competition cut sales of other agricultural products, like pesticides (44% of total revenue) by 14.9%. Low prices for corn and other commodities probably mean farmers will plant fewer…