Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, October 4, 2013

Article Excerpt

MONSANTO CO., $105.63, New York symbol MON, is buying Climate Corp., a private company that specializes in weather forecasting software and climate models. These products help farmers decide when to plant their crops in order to maximize their harvests. This technology will also help Monsanto develop genetically engineered seeds for specific regions and weather conditions. The company will pay $930 million for Climate Corp. when the deal closes in the next few weeks. Meanwhile, Monsanto earned $2.5 billion, or $4.60 a share, in its 2013 fiscal year, which ended August 31, 2013. That’s up 21.4% from $2.0 billion, or $3.79 a share, in 2012. Without unusual items, such as costs to settle a tax dispute, Monsanto’s per-share earnings would have risen 23.2%, to $4.56 from $3.70. On that basis, the latest earnings missed the consensus estimate of $4.58. The higher earnings are mainly due to a 10.0% rise in sales, to $14.9 billion from $13.5 billion. Seed sales (which account for 70% of…