Monsanto Posts Big Numbers (MON, MOS, POT, CF, AGU)

Seed and fertilizer maker Monsanto Co. (NYSE: MON) reported second fiscal quarter earnings this morning that set a record for the quarter. The company also boosted its EPS outlook for the full fiscal year.

Monsanto, along with Mosaic Co. (NYSE: MOS), Potash Corp. of Saskatchewan Inc. (NYSE: POT), CF Industries Inc. (NYSE: CF), and Agrium Inc. (NYSE: AGU), has seen its share price rise steadily since the first of the year. Agrium and CF Industries are up around 30% year-to-date, while Monsanto is up about 17%, Potash Corp. up about 12%, and Mosaic up more than 4%.

Monsanto reported second quarter revenue of $4.75 billion compared with a consensus estimate of $4.53 and EPS of $2.24 compared with a consensus estimate of $2.12. The company also guided full-year EPS to $3.49-$3.54, slightly better than the consensus estimate of $3.51. The company’s CEO predicted continuing growth:

We’ve seen contributions from growth across crops and geographies, which position us well to deliver high-teens ongoing earnings growth this year

The company’s seeds and genomics business posted revenue of $3.9 billion, up $503 million from the same period a year ago. Monsanto attributed the increase to its sales of corn seed, particularly in the US. The company’s fertilizer business grew from $710 million in the second quarter a year ago to $824 million this year.

Shares of Monsanto are up about 1.6% in the pre-market at $83.09 in a 52-week range of $58.89-$83.95.

Paul Ausick