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Monsanto Raising Earnings Guidance

Below is another story of a commodity company increasing earnings estimates for the year. Global growth is not dead…

Monsanto Tries Raising Guidance (MON)

Monsanto_logo Monsanto Company (NYSE: MON) has come out and raised Fiscal-2008 earnings estimates. The crop and agriculture player now sees earnings at $3.58 to $3.60 EPS. It also put its reported guidance to a range of $3.49 to $3.51 EPS. Its prior guidance was listed as $3.37 EPS on an ongoing basis, and $3.63 EPS on an as reported basis. First Call has estimates pegged at $3.45 EPS.

CFO Terry Crews will be presenting this data to investors today as part of a presentation at the Bank of America 38th Annual Investment Conference. The company noted that this change in guidance reflects higher sales and gross profit in the seeds and traits business. It also sees its Roundup and other glyphosate-based herbicide business going strong. This guidance now reflects the effect of income from discontinued operations, the Solutia settlement. and in process research and development from the De Ruiter acquisition.

If you think growth has disappeared entirely from the economy, that might not be true as far as this company is concerned. This is representative of roughly 80% earnings growth.

Monsanto now sees its seeds and genomics segment generating over $3.8 billion in gross profit for its 2008 fiscal year. This is above its prior expectations of $3.7 billion on higher than expected sales from the company’s corn, soybean and vegetable platforms. Monsanto’s Roundup and other glyphosate-based herbicides business is on track to be above $1.9 billion of gross profit for the 2008 fiscal year, which is also ahead of the previous forecast. The company said that its fundamentals of agriculture and in its businesses are “strong and getting stronger.”

Unfortunately, this is also falling on deaf ears as the market is selling even the growth spots again after yesterday’s market tank. Shares are down over 3% at $101.50 right before the open and its 52-week trading range is $74.84 to $145.80.

This story is by Jon C. Ogg at 24/7 Wall Street