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Monsanto Reports 4Q17 Earnings: Stock Unchanged

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Part 2
Monsanto Reports 4Q17 Earnings: Stock Unchanged PART 2 OF 6

Monsanto Delivers Sales Growth in 4Q17: Soybean Segment Booms

Monsanto’s sales

Overall, Monsanto’s (MON) sales from all its segments rose 5.0% year-over-year to $2.7 billion from $2.6 billion in 4Q16. For fiscal 2017, its sales rose 8.4% year-over-year to $14.6 billion from $13.5 billion a year ago.

Monsanto Delivers Sales Growth in 4Q17: Soybean Segment Booms

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Sales by segments

Monsanto’s sales come primarily from two segments: Seed and Genomics and Agricultural Productivity. Seed and Genomics contributed almost 75.0% of the company’s net sales in fiscal 2017.

Seed and Genomics’ sales rose 12.0% year-over-year to $1.7 billion in 4Q17 from $1.6 billion in 4Q16. Year-over-year, the segment’s net sales rose 9.0%, from $9.9 billion to $10.9 billion.

On the other hand, Agricultural Productivity’s sales fell 6.0% year-over-year in 4Q17 to $0.90 billion from ~$1.0 billion in 4Q16. However, year-over-year for fiscal 2017, the segment’s sales rose 6.0% to $3.7 billion from $3.5 billion.

Digging deeper

Digging deeper into segment sales, we see that under the umbrella of the Seed and Genomics segment, sales for the Soybean subsegment rose 22.0%, followed by the Corn subsegment with a sales growth of 16.0% year-over-year and the Vegetable Seeds subsegment with sales growth of 6.0%.

In contrast, sales for the Cotton subsegment fell 24.0% year-over-year, and sales growth for the Other Seeds segment was flat.

The growth momentum in Monsanto’s sales is a positive sign for the agricultural sector and may benefit companies (MOO) such as FMC (FMC), Syngenta (SYT), and DowDuPont (DWDP). Analysts expect FMC’s sales to fall 15.2% year-over-year in its upcoming quarter.

Next, let’s take a look at Monsanto’s gross profit performance by segment.

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