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Wednesday, January 07, 2009
Monsanto Reports 117% Growth in Earnings in 1Q
Kathryn Glass
FOXBusiness
Shares of Monsanto (MON) soared on Wednesday after the company soundly beat earnings estimates and raised its outlook for the year.
The St. Louis, Mo.-based company reported profit of $556 million or $1.00 per share for the first quarter of fiscal 2009, compared to $256 million or 46 cents per share one year ago.
Analysts were expecting earnings of 59 cents per share according to Reuters.
The company revised its full-year outlook from a range of $4.20 to $4.40, to profit between $4.40 and $4.50 per share in 2009.
The company cited growth in its Latin American businesses, as well as increased sales of its herbicides and corn seed in Brazil
and higher-than-expected sales of corn and soybean seed in the U.S. for the impressive results.
Shares of Monsanto jumped 15.45% or $11.31 and were trading at $84.53 per share on Monday, midday.
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FOX Translator
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Most folks judge the health of a business by the revenue that comes in through sales. But not all revenue is equal. Companies can grow their sales by buying other companies, which means you don't get a clear view of how the real sales trends are moving.
So, many analysts, particularly those who look at retail, try to gauge what¿s known as "organic" growth, by looking at same-store sales. These are sales only at outlets open more than a year, so the metric can exclude any sales jump that comes from opening new locations. Retailers release same-store sales (which are frequently called "comps" since they're a true comparison from the previous period) every month.
Retail, incidentally, isn't the only industry to look at same-store sales. Hospital companies, also use the metric, to gauge how existing hospitals are performing compared to ones they just built or acquired.
