Recently, Monsanto Company (MON) completed its $200 million expansion just outside of New Orleans. The expansion was started in April 2008 to increase production of the agricultural herbicide – Roundup.

Roundup is one of the world’s leading crop protection products. This has been a huge project for Monsanto in scope and in terms of financial investment. This expansion will help boost Roundup production capacity by 20%.

Monsanto is a leading global provider of agricultural products. The company’s pipeline of agricultural biotechnology products stands unmatched in the industry.

However, the intense competitive environment and Monsanto’s huge dependence on a few large customers pose a risk. Nevertheless, a healthy balance sheet, along with a robust pipeline of new products and the continuous growth in the seeds and genomics segment, appears encouraging.

For fiscal 2010, the Zacks Consensus Estimate is $3.26 per share, compared to $3.78 in fiscal 2009. Monsanto expects full-year 2010 EPS in the range of $3.10 to $3.30. Over the past month, the Zacks Consensus Estimate has fallen from $3.29 to $3.26.

Five out of 16 covering analysts have lowered their estimates. The Zacks Consensus Estimate for fiscal 2011 has also gone down from $4.44 to $4.41 in the last 30 days as 2 out of 16 analysts have lowered their estimates, while only 1 has raised his estimate.

Monsanto remains a Zacks #3 Rank (‘hold’), as we believe that its healthy balance sheet, along with a robust pipeline of new products and continuous growth in the seeds and genomics segment, will drive both near term and long-term growth. We also maintain our long-term recommendation of Neutral.

Zacks Investment Research

1. (MON) Monsanto Results Remain StableRecently, Monsanto Co. (MON) recently reported results for the first quarter of 2010. Net sales...
2. (MON) Monsanto Company Signs Licensing DealMonsanto Company (MON) and Limerick, Ireland-based biotechnology firm Stokes Bio Limited entered into a licensing...
3. (MON) Monsanto Reports a Net LossMonsanto Company (MON) reported results for the first quarter of 2010, which ended November 30,...
4. (MON) Monsanto Wins New ContractMonsanto Company (MON) has signed a long-term supply contract with Air Products (APD), the leading...
5. (MON) Monsanto Company – Estimates Climbing As Earnings Report NearsMonsanto Co.(MON) is heading into its next earnings announcement with estimates on the rise. Shares...
6. (MON) Monsanto Co – return on equity (ROE) of 22%, well above the industry average of 5%Monsanto Co. (MON) recently declared a quarterly dividend of 24 cents per share. The company...

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