Market News & Headlines >> Monsanto Sees Profits Doubling In 5 years
Monsanto Co. shares jumped more than 5% today after the company gave a bullish long-term forecast and announced plans to buy back $6 billion in stock over the next year.
The company does not typically issue long-range forecasts but said today it expects earnings per share to double over the next five years, as it integrates its precision agriculture platform with its seed business and boosts sales in South America, particularly for soybeans. Monsanto is “not simply a seed company,” CEO Hugh Grant told investors in a conference call following third quarter earnings.
“We’re a company that sees growth five years down the line, and it’s compelling,” Grant said.
The outlook and share repurchase overshadowed third-quarter earnings, which were down 6% from a year ago. The company reported earnings of $1.62 per share, down from $1.68 a year ago but above the consensus Wall Street forecast of $1.56.
The company also noted that corn seed production costs have risen significantly due to flooding late in the growing season in Argentina. It did not indicate whether that would affect U.S. sales prices in 2015.