Monsanto Tries Raising Guidance (MON)

Monsanto Company (NYSE: MON) raised fiscal 2008 earnings estimates.  The crop and agriculture player now sees earnings of $3.58 to $3.60 per share.  It also gave reported guidance of $3.49 to $3.51.  Its prior guidance was $3.37 on an ongoing basis and $3.63 on a reported basis.  First Call has estimates pegged at $3.45.

CFO Terry Crews will be presenting this data to investors today at Bank of America 38th Annual InvestmentConference.  The company noted that this change in guidance reflectshigher sales and gross profit in the seeds and traits business.  Italso sees its Roundup and other glyphosate-based herbicide businessgoing strong.   This guidance includes income fromdiscontinued operations, the Solutia settlement and in-processresearch and development from the De Ruiter acquisition.

If you think growth has disappeared entirely from the economy, thatmight not be true as far as this company is concerned.  This isrepresentative of roughly 80% earnings growth.

Monsanto now sees its seeds and genomics segment generating more than $3.8billion in gross profit for its 2008 fiscal year.  This is above itsprior forecast of $3.7 billion on higher-than-expected sales fromthe company’s corn, soybean and vegetable platforms.  Monsanto’sRoundup and other glyphosate-based herbicides business is on track tobe above $1.9 billion of gross profit for the 2008 fiscal year, whichis also ahead of the previous forecast.  The company said that itsfundamentals of agriculture and its businesses are "strong andgetting stronger."

Unfortunately, this is also falling on deaf ears as the market isselling even the growth spots after yesterday’s market tank.Shares are down over 3% at $101.50 right before the open and its52-week trading range is $74.84 to $145.80.

Jon C. Ogg
September 16, 2008