Agriculture products provider, Monsanto Company (NYSE: MON) reported on Wednesday that net income jumped 22% in the fiscal second quarter as top line growth was boosted by strong sales of biotech seeds in the emerging markets, especially Brazil.
The St. Louis, Missouri-based Company also raised its outlook on the current quarter.
Monsanto, which has been a market leader in the bioengineered seeds business for more than 10 years, recently focused on emerging markets of South America to increase its traction in international markets.
Thanks to Monsanto’s genetically engineered cotton, corn, soybean and other seeds, which fend off bugs, farmers have been able to increase yields significantly.
For the fiscal second quarter which concluded on Feb 13, Monsanto reported net income of $1.48 billion or $2.74 a share, up from profit of $1.21 billion or $2.24 a share, in the year-earlier quarter.
Revenue during the quarter climbed 15% to $5.47 billion. Revenue was mainly driven by genetically modified corn seeds, which is company’s top selling product.
Analysts polled by FactSet Research were expecting earnings of $2.56 a share on revenue of $5.27 billion.
While sales from Monsanto’s seeds division jumped more than 10% to $4.3 billion, sales from agricultural productivity segment which includes herbicides and pesticides leaped 36% to $1.1 billion.
Looking ahead at full-year results, the Company expects earnings to be in the range of $4.40 a share to $4.50 a share, up from its initial guidance of $4.30 a share to $4.40 a share. Analysts’ consensus estimate was for earnings of $4.56 a share.