Monsanto Guides High on New Biz - Analyst Blog
December 15 2011 - 3:30AM
Zacks
Monsanto Company
(MON) recently raised its expected earnings per share guidance for
the first quarter of fiscal 2012. The first quarter earnings were
scheduled to be released on January 5, 2012. The company’s
earnings per share guidance for the first-quarter ongoing and
as-reported are expected to be in the range of $0.15 to $0.20, an
increase from its previous guidance of the high end of the $0.10 to
$0.15 range.
The company reaffirmed its
full-year guidance, confirming its mid-teens earnings growth
outlook for the year. This reflected the company’s strategic
growth plan, wherein the company expects the strength of its
business in Brazil and Argentina along with the pipeline of new
product launch to drive growth during the first quarter.
However, full-year earnings per
share and cash flow guidance remain unchanged. Earnings per
share for the full fiscal are expected in the range of $3.34 to
$3.44 on an ongoing and as-reported basis. The company projects
free cash flow in the range of $1.3 billion to $1.5 billion for
fiscal year 2012, with net cash provided by operating activities to
be $2.2 billion to $2.5 billion, and net cash required by investing
activities to be approximately $900 million to $1 billion.
Thus, in its effort to sustain the
above growth target, the company has lined up a series of new and
exclusive products along with Advanced Breeding Program for 2012.
Industry leading, DEKALB will provide a full launch for Genuity®
SmartStax® RIB Complete™ and Genuity® VT Double PRO® RIB Complete™
blended corn products in 2012. The new product will be
offering the farmers a convenient and time saving single-bag refuge
management solution. This solution will incorporate the lowest
refuge at 5%, in the Corn-Growing Area for higher whole farm yield
potential. Moreover, DEKALB will also continue to offer a portfolio
of top-performing products featuring Genuity® VT Triple PRO® trait
technology.
In a separate story, Monsanto
Company has recently been reported to have declared a quarterly
dividend on its common stock of $0.30 per share. The dividend will
be payable on January 27, 2012 to shareowners of record as of
January 6, 2012. It relates to the first quarter of the
company's 2012 fiscal year.
Monsanto Company is a leading
global provider of agricultural products for farmers, operating in
Seeds and Genomics and Agricultural Productivity segments.
Monsanto’s biotechnology research and innovations position it as a
market leader above its peers, viz, Syngenta AG
(SYT), The Scotts Miracle-Gro Co (SMG),
The Dow Chemical Company (DOW) and BASF
SE.
We currently maintain a long-term
Outperform recommendation on the stock.
DOW CHEMICAL (DOW): Free Stock Analysis Report
MONSANTO CO-NEW (MON): Free Stock Analysis Report
SCOTTS MIRCL-GR (SMG): Free Stock Analysis Report
SYNGENTA AG-ADR (SYT): Free Stock Analysis Report
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