Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, June 27, 2014

Article Excerpt

MONSANTO CO., $125.12, New York symbol MON, reported better-than-expected quarterly earnings this week. It also announced a new share buyback plan. Monsanto 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 third quarter of its 2014 fiscal year, which ended May 31, 2014, Monsanto earned $858 million, down 5.6% from $909 million a year earlier. Earnings per share fell 3.6%, to $1.62 from $1.68, on fewer shares outstanding. But even with the decline, the latest earnings beat the consensus forecast of $1.54. Sales were unchanged at $4.25 billion, missing the consensus forecast of $4.39 billion. Seed sales (which account for 72% of Monsanto’s total) fell 0.5%. Lower corn prices have prompted farmers to switch to more-profitable crops, like soybeans. That cut the company’s corn seed sales by 16.4% in the latest quarter. Sales of other agricultural products, like pesticides (28%), rose 1.3%. Excluding unusual items, Monsanto now expects to…