Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, January 08, 2016

Article Excerpt

MONSANTO CO., $92.79, New York symbol MON, develops and 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 2016 fiscal year, which ended November 30, 2015, Monsanto lost $52 million, or $0.11 a share. However, that was much better than the consensus estimate of a $0.22-a-share loss. A year earlier, the company earned $227 million, or $0.47 a share. Sales declined 22.7%, to $2.2 billion from $2.9 billion, missing the consensus forecast of $2.4 billion. Seed sales (which accounted for 63% of Monsanto’s total) fell 13.7%, as lower prices have hurt demand for its corn, cotton and vegetable seeds. However, soybean-seed sales rose 10.6%, thanks to strong demand for the company’s new products in South America. Sales of other agricultural products, like pesticides (37% of revenue), declined 34.3%. In response to low crop prices and the negative impact of the high U.S. dollar, Monsanto…