UPDATE 6-Monsanto profit falls, but shares rise on bullish outlook
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By Carey Gillam
June 25 (Reuters) - Monsanto Co reported a 6 percent drop in quarterly profit on Wednesday, but shares jumped more than 5 percent as the world's largest seed company beat forecasts, improved its near-term outlook and said it planned to double earnings over the next five years.
The company, known for its genetically engineered corn, soybeans and other crops as well as the popular Roundup herbicide, also announced authorization of a $10 billion share repurchase and cited strong progress on a new farm data business platform.
Monsanto said that although earnings for the third quarter ended May 31 were down in the face of challenging market conditions, the overall outlook was bright.
"We're on track for seeds and traits to drive a majority of our full year growth," said Chairman Hugh Grant. "That performance in a more challenging agricultural environment speaks to the breadth and customer value of our product portfolio."
Grant said that by the end of fiscal 2019, the company aimed to at least double full-year ongoing earnings, which exclude certain special after-tax items. More than $4 billion of total gross profit growth will come from its core seeds and traits unit, the company said.
The company also raised the low end of its full-year outlook for ongoing earnings to $5.10 a share from $5.00 while keeping the high end at $5.20.
"The confidence level is off the charts," said John Roberts, executive director of U.S. chemical equity research at UBS. "They feel they have as deep a growth pipeline as they've had in a long time." Continuación...