The Rising Influence of Rising Affluence

[DewDiligence]

MON logs strong FY2Q14; maintains full-year EPS guidance:

http://finance.yahoo.com/news/monsanto-beats-expectations-profit-climbs-122656606.html

Growing market opportunities in Eastern Europe and advancements in Latin America are helping the company's corn business. And despite year-to-year fluctuations in output and demand, Monsanto said it sees demand for corn worldwide surging with population and income growth over the next several years.

…sales of soybean seeds and traits rose 21 percent to a record $820 million. Monsanto is undertaking its largest-ever soybean product launch now [Intacta, the insect-protection soybean seed designed especially for Brazil], rolling out offerings in Latin America that combine tolerance to glyphosate herbicide, protection against caterpillars and yield improvement.

…Monsanto said it had earned $1.67 billion, or $3.15 a share [GAAP], in the second quarter, up 13 percent from $1.48 billion, or $2.74 a share, a year earlier. Analysts on average were expecting $3.07 a share, according to Thomson Reuters I/B/E/S. Net sales rose to $5.8 billion from $5.5 billion, in line with analysts' expectations.

The company said it still expected full-year earnings per share of $5.00 to $5.20 on an ongoing [non-GAAP] basis and $5.02 to $5.22 on a net [GAAP] basis.

This is one of the rare instances where non-GAAP EPS guidance is smaller than GAAP EPS guidance. Both the non-GAAP and GAAP EPS ranges include a negative contribution of 15-20 cents from currency.

Also notable: MON is repurchasing its own stock at an annualized rate equivalent to 3% of the shares outstanding.