Earnings Preview: Monsanto Co.

NEW YORK (AP) _ Monsanto Co., which makes insect- and disease-resistant agricultural products, reports earnings for the fiscal third quarter on Wednesday. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: The St. Louis-based agricultural chemicals maker's profits have gotten a significant boost in recent years from farmers looking to take advantage of increased crop prices, especially for corn.

In April, the company said its second-quarter earnings more than doubled on strong sales of corn seed and herbicide in the United States and reported a 45 percent increase in sales.

Earlier this month, Monsanto Co. Chief Executive Hugh Grant promised to develop new strains of corn, soybeans and cotton that can yield twice as much grain and fiber per-acre while consuming just two-thirds as much water by the year 2030.

Monsanto also said in May that it still expects its gross profit to more than double by 2012 by increasing productivity and yields to farmers.

In 2007, the company's gross profit was $4.29 billion. If the company can double that number, its gross profit will reach about $8.5 billion by 2012.

BY THE NUMBERS: Analysts polled by Thomson Financial expect a third-quarter profit of $1.34 per share for the quarter on $3.71 billion in revenue.

ANALYST TAKE: At least eight Wall Street analysts rate Monsanto stock at "Buy," while at least four rate it "Neutral."

WHAT'S AHEAD: Laurence Alexander of Jefferies&Co. said he doesn't expect replanting resulting from the recent floods in the Midwest to have a significant impact on Monsanto's fourth-quarter results.

"To the extent elevated corn prices contribute to crop rotation next year, coupled with potentially higher crop insurance costs, Monsanto's hardier triple-stack could benefit — particularly if insurance companies extend this year's trial insurance rebate program," Alexander wrote in a recent note to investors.

STOCK PERFORMANCE: Monsanto shares rose about 10 percent during the quarter. So far this calendar year, Monsanto shares are up about 14 percent to close Friday at $127.40.