(MON) - Monsanto - earnings expectations in six out of the past seven quarters by an average margin of 14.3%

Monsanto Company (MON) topped analysts’ earnings expectations in six out of the past seven quarters by an average margin of 14.3%. Earnings per share for this Zacks #1 Rank company is expected to grow 17.3% over the next 3-5 years. On Dec 12, the Board of Directors announced a 25% increase in the company’s quarterly dividend to 12.5 cents per share. MON is currently yielding 0.98%. Full Analysis Monsanto Company, together with its subsidiaries, provides agricultural products for farmers in the United States and internationally. The company operates in two business segments: Seeds & Genomics and Agricultural Productivity. The Seeds and Genomics segment consists of the company's global seeds and traits business, and genetic technology platforms, including biotechnology, breeding and genomics. The Agricultural Productivity segment consists primarily of crop protection products, residential lawn-and-garden herbicide products and the company's animal agricultural businesses. MON exceeded analysts’ earnings expectations in six out of the past seven quarters by an average margin of 14.3%. Earnings per share grew 13.9% over the past five years and are expected to grow by a larger magnitude going forward—17.3% over the next 3-5 years. On Jan 4, MON posted first-quarter fiscal 2007 profits of $90 million, or 16 cents per share. With the Street expecting 10 cents, the company surprised by an impressive 60.0%. Compared to profits of $59 million, or 11 cents per share in the prior-year period, the result represented a 45.5% year-over-year improvement. Revenues climbed 9.2% to $1.54 billion from $1.41 billion a year ago. Chairman, President and CEO Hugh Grant stated, “We remain focused on delivering the next generation of innovation to the farm by offering our farmer customers meaningful seed and trait technologies. Our results in the first quarter are testament to this commitment and the value our products are providing farmers.” The company now believes full-year earnings per share could be toward the upper end of its previously announced range between $1.50 and $1.57. The consensus estimate for this year currently resides at $1.59, up two cents over the past 60 days. Profit forecasts for next fiscal year have risen four cents to $1.88 over the same period of time. On Dec 12, the Board of Directors announced a 25% increase in the company’s quarterly dividend to 12.5 cents per share from 10 cents. Since MON was spun off as an independent company in August 2002, the Board has boosted the dividend on five occasions by a cumulative total of more than 100%. The company has a current dividend yield of 0.98%. MON’s return on equity of 11%, a common measure of profitability, is in line with that of the industry average. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home