Monsanto's (MON) Q1 Sales Surge 33%, Guidance Now at High End of Range
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On Thursday Monsanto Company (NYSE: MON) delivered above-estimate results for the first quarter of its fiscal year 2012 and pointed to the high end of its previously reported annual earnings per share guidance. Among other items, the company cited strength in its seed business.
Shares of Monsanto are trading up over 5 percent to $76.27 this afternoon.
Net sales increased 33 percent over the prior year's quarter to $2.4 billion and topped the Street’s consensus estimate of $2.05 billion. Gross profit also increased 33 percent to $1.1 billion, and gross profit as a percent of sales was even with the prior year at 45 percent.
Selling, general and administrative expenses increased $50 million year over year to $500 million as a result of inflation and commissions from higher sales.
Net income rose from $9 million last year to $126 million and resulted in earnings per share of $0.23. Earnings for the quarter trumped the Street's consensus of $0.16 per share and the company’s previous earnings of $0.02 per share during the first quarter of fiscal 2011.
The company ended the quarter with about $3 billion in cash and cash equivalents as free cash flow for the quarter was $856 million, well above the $500 million seen during the prior year
The company affirmed its guidance of free cash flow for fiscal year 2012 in the range of $1.3 billion to $1.5 billion, reflecting an investment of $600 to $700 million in capital expenditures. The company expects 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 for fiscal year 2012.
The company guided to the high end of its full-year 2012 ongoing EPS mid-teens earnings growth guidance, expecting to achieve $3.39 to $3.44 of ongoing and as-reported EPS. The Street’s consensus for the year in earnings is $3.48 per share
The company also previewed a strong U.S. order book and announced 14 phase advancements across its breeding, biotechnology, and chemistry and agronomic research and development platforms, representing a record number of advancements for its annual pipeline update.
"We've seen a very strong start to the year, with real growth in Latin America and early orders in the United States that underscore our sustained momentum carrying into 2012," said Hugh Grant, chairman, president and chief executive officer for Monsanto. "We are pleased growers have recognized the value of our products and the benefits they provide on farm. Our pipeline progress continues to be a competitive differentiator, and that's ever more important as we put an even greater focus on delivering yield to growers."
Shares of Monsanto are trading up over 5 percent to $76.27 this afternoon.
Net sales increased 33 percent over the prior year's quarter to $2.4 billion and topped the Street’s consensus estimate of $2.05 billion. Gross profit also increased 33 percent to $1.1 billion, and gross profit as a percent of sales was even with the prior year at 45 percent.
Selling, general and administrative expenses increased $50 million year over year to $500 million as a result of inflation and commissions from higher sales.
Net income rose from $9 million last year to $126 million and resulted in earnings per share of $0.23. Earnings for the quarter trumped the Street's consensus of $0.16 per share and the company’s previous earnings of $0.02 per share during the first quarter of fiscal 2011.
The company ended the quarter with about $3 billion in cash and cash equivalents as free cash flow for the quarter was $856 million, well above the $500 million seen during the prior year
The company affirmed its guidance of free cash flow for fiscal year 2012 in the range of $1.3 billion to $1.5 billion, reflecting an investment of $600 to $700 million in capital expenditures. The company expects 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 for fiscal year 2012.
The company guided to the high end of its full-year 2012 ongoing EPS mid-teens earnings growth guidance, expecting to achieve $3.39 to $3.44 of ongoing and as-reported EPS. The Street’s consensus for the year in earnings is $3.48 per share
The company also previewed a strong U.S. order book and announced 14 phase advancements across its breeding, biotechnology, and chemistry and agronomic research and development platforms, representing a record number of advancements for its annual pipeline update.
"We've seen a very strong start to the year, with real growth in Latin America and early orders in the United States that underscore our sustained momentum carrying into 2012," said Hugh Grant, chairman, president and chief executive officer for Monsanto. "We are pleased growers have recognized the value of our products and the benefits they provide on farm. Our pipeline progress continues to be a competitive differentiator, and that's ever more important as we put an even greater focus on delivering yield to growers."
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