Premium agro-chemical producing firm, Monsanto Company (MON), has decided to boost its corporate operations with a $365 million public debt offering on Jan 16, 2015. The senior notes against debt hold an interest rate of 4.3% and are due for maturity in 2045.
Monsanto has historically expanded its business on the back of innovative and genetically-tailored herbicides and seeds. The company designs these products with the aim of enhancing crop productivity as well as controlling weed-destroying chemicals in different types of agricultural products. Through the public debt offering, Monsanto intends to finance its general corporate activities in the form of share repurchase or capital expenditure schemes.
Driven by such strategic operational programs, Monsanto upholds a positive outlook for its upcoming earnings release. Within the next five years, the company aims to double its earnings and escalate gross profit by $4 billion. In addition, the company claims to have generated significant employment opportunities across its major marketplaces on the back of its organic expansion products.
Over the last four trailing quarters, Monsanto generated an average earnings surprise of 8.05%. In the last reported quarter, the company’s adjusted earnings surpassed the Zacks Consensus Estimate by 38.2%, largely due to its innovation-based growth plans. We believe such optimistic moves would soon strengthen investors’ sentiments over this agricultural stock.
With a market capitalization of $56.92 billion, Monsanto currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Wilmar International Limited (WLMIY), Alcoa Inc. (AA) and Air Products & Chemicals Inc. (APD). While Wilmar International sports a Zacks Rank #1 (Strong Buy), both Alcoa Inc. and Air Products & Chemicals Inc. hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment