A new thermal steam vent is grabbing attention in ever-changing Yellowstone National Park
Musk: government efficiency team is getting death threats on a daily basis
23andMe's journey from DNA testing pioneer to bankruptcy
Trump officials texted war plans to a group chat in a secure app that included a journalist
Putin gifted a portrait of Trump to the U.S. president
Congo rebel leader says sanctions, any minerals deal with the US won’t stop fighting in the east
Morgan Stanley says Fed poised to regain positive cash flow
Coach Ryan Day confirms national champion Ohio State will visit White House on April 14
Murphy, beloved bald eagle who went viral for incubating a rock, dies after Missouri storms
By Sourasis Bose
(Reuters) - Corteva's shares jumped 16% on Thursday, after the U.S. agricultural chemical firm topped Wall Street expectations for fourth-quarter profit backed by strong seed prices.
The seed maker reported operating profit of 15 cents per share for the quarter ended Dec. 31 on Wednesday, beating analysts' estimate of 6 cents per share, according to LSEG data, while its net sales were also above expectations.
In the crop protection segment, which constitutes herbicides and pesticides, volumes and pricing held up better compared with expectations, KeyBanc analysts wrote in a note.
Corteva said it expects sales volumes growth in both seed and crop protection segments in 2024.
Shares of rival FMC also gained 5%.
Agrichemical firms had suffered from weak demand in South America in the latter half of 2023 due to droughts, which hit their sales volume.
The impact from South America, coupled with destocking in several regions, led to a 18.5% fall in Corteva's share price in 2023.
"In North America, corn production and yield for the '23-'24 crop year is expected to hit a new record despite the productivity challenges that farmers must face related to weather and disease," said CEO Chuck Magro in a conference call.
The company forecast 2024 net sales in the range of $17.4 billion to $17.7 billion, implying a growth of 2% at mid-point.
Corteva's forward price-to-earnings ratio is 14.86, below its average of 19.43, according to LSEG data, while FMC's forward PE ratio is 13.20.
Comparatively, a lower multiple reflects an attractive investment opportunity.
Corteva had also said on Wednesday it plans to buy-back $1 billon shares in 2024.
(Reporting by Sourasis Bose in Bengaluru; Editing by Krishna Chandra Eluri)
