Monsanto (MON) posted record results for the fiscal second-quarter and is watching Wall Street lift estimates. The company’s earnings per share are expected to grow by 19% over the next 3 – 5 years, while the industry’s expectation stands at 11%. Monsanto’s ROE of 21% signals growth and surpasses the industry average of 9%. In addition to growth, Monsanto offers income in the form of a dividend yield of 0.5%, which is ahead of what the industry pays.
Monsanto is an agricultural company that applies innovation and technology to help farmers around the world produce healthier foods, better animal feeds and more fiber, while also reducing agriculture's impact on the environment.
The company announced fiscal second-quarter results in early April. MON said it had record net sales of $3.8 billion for the second quarter, 45% higher than sales in the same period in fiscal year 2007. Key drivers for the quarter were increased revenues from the company's U.S. corn seed and traits business, as well as increased revenues from its Brazilian corn seed business. Results in the quarter also reflected increased revenues from the company's Roundup agricultural herbicides globally.
Chairman, President and Chief Executive Officer Hugh Grant stated:
The performance of our seeds and traits business has us on track for another exceptional year and well positioned to support our five-year strategic growth plan. Between now and 2012, we are the only agriculture company that can point to consistent growth irrespective of commodity price swings, fluctuations in planted acres or the popularity of ethanol. Over the next five years we're poised to set the bar higher as we deliver a game changing platform every other year, real products that create real value for the farmer and for our shareowners.
Analyst earnings estimates have been on the rise since the second-quarter report with increases occurring in just the past week.
The company’s earnings per share are expected to grow by 19% over the next 3 – 5 years, while the industry’s expectation stands at 11%. Growth is also evident in its net profit margin of 17%, versus the industry’s average of 14%, and Monsanto’s return on equity [ROE] of 21% signals growth, surpassing the industry average of 9%.
In addition to growth, Monsanto offers income in the form of a dividend yield of 0.5%, which is ahead of what the industry pays.