Monsanto Earnings Preview

Genetic seeds and garden products maker Monsanto

reports fiscal first-quarter results before the bell Thursday and analysts are looking for a profit of 16 cents a share on sales of $2.05 billion. That estimate has risen from 5 cents three months and 13 cents a month ago. In the most recent reported quarter, Missouri-based Monsanto reported a narrower loss than Wall Street expected and making it four straight quarters the company has topped estimates. Eleven of the analysts that cover Monsanto rate the shares Buy and the average price target is just below $81, implying decent upside from the $72.70 area the stock closed at on Wednesday. In addition to the company's outlook and what it has to say about crop prices, corn in particular, is how competition from rivals such as DuPont

and Scotts Miracle-Gro

is impacting the bottom. To assuage skittish investors, Monsanto must show farmers are still showing robust demand for its biotech seeds, which are typically priced higher than products produced by rivals. Shares of Monsanto are up almost 7% in the past year and currently trade at 18 times forward earnings. The stock is 7.7% below its 52-week high, but almost 5% above its 200-day moving average. The dividend: Monsanto's dividend has tripled since 2006, but the company raised its payout late last year, so another increase probably isn't in the cards following Thursday's report.