) hit a new 52-week high of $107.73 on May 3 and eventually
closed at $107.28. The shares of this agricultural chemicals
company have been gaining momentum since it reported solid fiscal
second quarter results on Apr 3.
Year-to-date, share price has recorded a healthy return of
14.2%. The company's long-term estimated EPS growth rate is
12.7%. Average volume of shares traded over the last three months
came in at approximately 2,382K.
Solid Second Quarter Performance
Monsanto posted strong fiscal second quarter results led by an
increase in revenue as well as earnings. Earnings per share came
in at $2.73, beating the Zacks Consensus Estimate of $2.53 per
share. Earnings also grew 19.7% year over year, driven by solid
top line growth.
Revenue was reported to be $5.5 billion, up 15.2% year over
year, beating the Zacks Consensus Estimate of $5.3 billion. The
main reason for increased revenue was the improvement in the
company's global corn business.
The corn business is expected to flourish in the coming
quarters as well, especially in Brazil and Argentina. Moreover,
management is quite optimistic about the U.S. seed business on
the back of its second quarter performance and expects fiscal
2013 to be one of the highest revenue earning years for the
Also, Monsanto's R&D lineup in molecular-bred hybrid
technologies as well as technical collaboration with
agri-business research firms continue to support sustainability
and modernization in cropping pattern for long-term growth.
The estimates have been mostly revised upwards for fiscal 2013
and 2014, subsequent to the earnings release. Over the last
thirty days, the Zacks Consensus Estimate has risen 0.65% to
$4.58 for fiscal 2013, while rising 1.73% to $5.28 for fiscal
Other Stocks to Consider
Monsanto currently carries a Zacks Rank #2 (Buy). Other stocks
worth a look in the industry are
); each carrying a Zacks Rank #2 (Buy).
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MONSANTO CO-NEW (MON): Free Stock Analysis
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