Monsanto Tops Earnings Estimates, Raises Outlook

January 7, 2009 11:29 a.m. EST

St. Louis, MO (AHN) - Monsanto Co. announced Wednesday fiscal first quarter earnings more than doubled as revenue jumped 29 percent on strong seed demand. The company also raised its 2009 fiscal year earnings guidance.

The world's biggest seed maker posted first quarter earnings of $556 million or $1 a share, well above the $256 million or 46 cents a share earned in the same period a year earlier. Excluding gains from discontinued operations, the company earned 98 cents a share.

Revenue surged 29 percent to $2.65 billion from $2.05 billion last year. Sales of herbicide were particularly strong, up 35 percent to $1.36 billion in the quarter.

The results were well ahead of analyst estimates for earnings of 59 cents a share on revenue of $2.44 billion, according to Thomson Reuters.

"The ongoing demand from farmers for our world-class technologies has allowed us to deliver such strong earnings growth while staying fully invested in our research and development pipeline," said President and CEO Hugh Grant, in a press release.

Sales were strong for seeds and genomics overall, rising 31 percent in the quarter to $1.1 billion. Soybean seed sales were up 31 percent to $212 million while corn seed saw a 34 percent sales jump.

Monsanto bumped its 2009 fiscal year earnings outlook. The company now expects to earn $4.40 to $4.50 cents a share, up from original forecasts of $4.20 to $4.40 cents a share. Shares of Monsanto are trading 13 percent higher to $83 in early morning action.