Digging In to Two Agricultural Plays
The first-quarter earnings season has been quite solid so far, with more companies than the historical average beating estimates in most sectors. But I have been particularly impressed with the agricultural sector so far. Several companies, including Agco (AGCO), Archer Daniels Midland (ADM) and Monsanto (MON), have easily beaten estimates and AGCO and Monsanto also lifted their guidance. A review of these earnings shows how strong the agricultural sector demand is right now.
Agco, which is one the largest agricultural equipment makers in the world, reported a stellar quarter Tuesday. Earnings came in at $1.21 a share, $0.35 above estimates, and $200 million above revenue estimates. Management raised fiscal-year 2012 guidance to $5.50 a share from the previous range of $5 to $5.07 previously. Most surprisingly, the company stated some of its strongest demand was coming from Western and Eastern Europe....405 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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