An agricultural products-giant Monsanto Company(NYSE:MON) soybean seed and traits business reported sales that surged 29% during the fiscal third quarter, which helped push the seed giant to more-than-predicted results for the period.
Monsanto Company(NYSE:MON) total sales were nearly flat, moving upward 1% to $4.23 billion but still better than the $4.17 billion predicted by analysts surveyed by Thomson Reuters.
The company said in a statement that “in soybeans, Monsanto has seen strong demand for the latest technologies, with growth of approximately 30[%]…in global gross profit now expected for fiscal year 2017. ”
While announcing the earnings results, Monsanto Company(NYSE:MON) said it predicts full-year earnings on a per-share basis at the high end of the range of $4.09 to $4.55 as well as adjusted earnings of $4.50 to $4.90.
Along with other factors affecting the current quarter, the company said it anticipates to profit from roughly $70 million in noncore asset sales.
During the last three months period, revenue from seeds and genomics, Monsanto’s largest business, plunged 2.3% to $3.13 billion despite the strong showing of the soybean seed segment, which is housed in the category. For the quarter, the soybean business jumped to $896 million in sales from $693 million.
In the meantime, major soybean-growing states have permitted herbicide mixes for the company’s new genetically tailored soybean, Roundup Ready 2 Xtend. The seeds were introduced last year, but concerns over EU approval slowed their use.
Furthermore Monsanto posted income of $843 million, or $1.90 a share, up from $717 million, or $1.63 a share, year over year.
In year 2016, Monsanto approved to sell itself to Bayer AG after prolonged negotiation in a $57 billion deal that creates an agricultural powerhouse. The deal has been in regulatory reviews in the U.S.
Monsanto (MON) reportedly is hoping the deal to close by the end of 2017.
The company’s stock jumped 0.64% to $118.00 in premarket trading Wednesday.