Shares of U.S. seed supplier Monsanto Company (NYSE:MON) are expected to rise after a positive fiscal third-quarter earnings report which will be released by the company during Wednesday’s trading session. On the other hand, the company is facing some issues with its plan to open a seed-processing and distribution facility as residents of the Indianapolis suburb along with its mayor opposed that said project due to its potential harm to the environment.
What To Expect From Earnings Report
The company is expected to deliver the quarterly earnings report before the market open on Wednesday. Monsanto Company is expected to deliver an earnings of around $2.41 per share. Although other analysts are projecting that the company will deliver an earnings of $1.88 per share. Wall Street analysts are expecting the company’s total sales to come at $4.08 billion.
The company delivered an earnings of $2.17 per share last year on $4.19 billion worth of sales during the same period. Overall, Monsanto shares have rallied by 11.1% year to date and has performed positively well this year.
Monsanto shares last traded down at $117.03 and is $19.68 above its twelve-month low and $1.12 down from its twelve-month high.
Indianapolis Trouble
After its highly publicized merger last year, Monsanto has been recently expanding into building more plants and facilities all over the country. The company’s tax break in Indianapolis has been dropped by Greenwood Mayor Mark Myers recently due to the amount of oppositions he and other city officials received regarding the project.
The company initially planned to build a seed-processing and distribution facility and has submitted a $29 million plan to build a 140,000 square foot infrastructure in a Greenwood industrial area. According to reports, the company’s plan poses a potential harm to the environment.
The Agribusiness giant has yet commented to whether the company intends to push through with the project despite the lack of property tax break support from the Greenwood mayor. Monsanto sought a ten-year personal property tax abatement worth $1.6 million on its initial investment plan. However, a company spokesperson stated that the company is currently exploring its options for leasing a warehouse in the area.