Linked In
News In
Linked In

You are viewing your 1 complimentary article.

Register now to receive full access.

Already registered?

Login | Join us now

Raised Monsanto guidance fails to stop share slide

Twitter Linkedin eCard

Fears for the agriculture boom sent Monsanto shares down 16.2%, despite the seeds-to-weedkiller group raising its earnings guidance for the seventh time this year.

Monsanto said it expected underlying earnings per share of $3.64 for the year to the end of August compared with a forecast of $3.58-3.60 given less than three weeks ago.

The group also added roughly $100m to gross profit forecasts from its Round-up herbicide for both the current and next financial years.

"Our business continues to be strong on all fronts, and that's reflected in both our performance and our confidence in our outlook," Hugh Grant, the Monsanto chairman, said.

Shares dip

However, the statement failed to stop Monsanto shares following other agriculture stocks sharply lower after Mosaic, the fertilizer maker, admitted it had missed sales guidance.

Monsanto stock closed down $15.83 at $82.01, albeit recovering some ground from an early lower of $78.91.

Donald Carson, a Merrill Lynch analyst, warned in a note that the surging cost of phosphate rock may hurt profits growth from Round-up.

Monsanto said phosphorus-related costs represented less that 10% of Round-up raw material costs.

By Mike Verdin

Twitter Linkedin eCard
Related Stories

Evening markets: Soybean futures gain, cotton prices jump on US data

Initial USDA forecasts for crop supply and demand for 2018-19 lift soy and cotton prices, but are not so well received in the cotton market

Will protein prices fight back against fat in dairy markets?

Prices of fats remain elevated against protein values in dairy - at a time when the opposite is true in markets for oilseed products

Weekly grain market view from Europe, February 23

EU cold snap could damage crops... UK market prices in closure of Vivergo ethanol plant... Rising Russian wheat prices...

Evening markets: Argentine moisture slips up soymeal rally. But weather revives wheat

Meal futures dip, a little, for the first time in 12 sessions. But wheat futures gain, as drought spreads in Kansas, and cold reaches Europe
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© 2017 and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of AgriBriefing Ltd
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069