On Thursday, Monsanto Company (NYSE: MON) posted its financial results for the first quarter of fiscal year 2018. Earnings of the company beat estimates, while revenue missed expectations. Shares of the company increased 0.05% in pre-market trading on Thursday after the announcement.
Revenue for the first quarter was $2,658 million, missing analysts’ estimate of $2,723 million. The company reported adjusted earnings of $0.41 per share for the first quarter, which beat analysts’ estimates $0.38 per share.
Additionally, selling, general and administrative costs were $664 million, while research and development expenses were $382 million for the first quarter. The increase in the costs and expenses was mainly due to higher commission, point-of-delivery costs and bad debt expense. Inflationary increases and increased spend on R&D also contributed to the rise in the expenses, according to the company.
“Even with the Bayer combination on the horizon, our teams have maintained their focus on the business and our customers, and delivered solid first-quarter results,” Hugh Grant, the chairman and chief executive officer of the company, said in the statement on Thursday.
“As we look to the balance of the year, we continue to expect strong adoption of our newest technologies and improved pricing for glyphosate to be tempered by challenging global corn and soybean prices, even as demand for both continues to grow,” he added.