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Syngenta (SYT) Q3 Earnings: Sales Fall Y/Y on Macro Woes
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Premium agricultural chemicals company, Syngenta AG (SYT - Free Report) reported weak trading results for third-quarter 2016. The company’s performance has been largely affected by headwinds associated with unfavorable weather, weak commodity prices, currency volatilities and tight credit conditions.
Syngenta’s integrated sales for third-quarter 2016 totaled $2.4 billion, down 4% year over year. Group sales, including revenues from the Lawn and Garden segment, were $2.5 billion, down 3% year over year.
In third-quarter 2016, Syngenta’s sales from Europe, Africa and the Middle East (EAME) region was $529 million, up 4% year over. The year-over-year increase was attributable to a rise in fungicide sales and productive seedcare campaigns of the company.
The company’s North American sales increased 11% year over year to $431 million. The upside was driven by gains from the company’s innovative weed-management solutions.
Sales from the Asia Pacific were $425 million, up 22% year over year at CER from the value recorded in the year-ago period. Quarterly sales strengthened on the back of better South Asian weather and the ending of El Nino.
Latin American sales for the quarter came in at $999 million, down 19% year over year. Sales in the region had declined year over year due to lower Brazilian sales volume.
Sales generated from the company’s Lawn and Garden division totaled $140 million, up 4% year over year. Quarterly sales improved due to increased Vector Control solutions demand and robust volume growth for the company’s Pest Management.
Outlook
Syngenta projects that its revenues in fourth-quarter 2016 would be supported by stronger Asia Pacific as well as Latin American sales. For 2016, the company estimates to accrue free cash flow of over $1 billion.
The company also perceives that its deal with ChemChina would open up new opportunities in business. The procedure of procuring regulatory approvals is well underway at this moment.
Some better-ranked stocks within the industry that warrant a look include:
AK Steel Holding Corp. currently carries a Zacks Rank #2 (Buy) and has an average earnings surprise of +200.42% over the four trailing quarters.
BASF SE (BASFY - Free Report) currently carries a Zacks Rank #2 and has an average earnings surprise of +31.01% over the last four quarters.
Cabot Corp. (CBT - Free Report) currently carries a Zacks Rank #2 and has an average earnings surprise of +2.07% over the trailing four quarters.
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Syngenta (SYT) Q3 Earnings: Sales Fall Y/Y on Macro Woes
Premium agricultural chemicals company, Syngenta AG (SYT - Free Report) reported weak trading results for third-quarter 2016. The company’s performance has been largely affected by headwinds associated with unfavorable weather, weak commodity prices, currency volatilities and tight credit conditions.
Syngenta’s integrated sales for third-quarter 2016 totaled $2.4 billion, down 4% year over year. Group sales, including revenues from the Lawn and Garden segment, were $2.5 billion, down 3% year over year.
In third-quarter 2016, Syngenta’s sales from Europe, Africa and the Middle East (EAME) region was $529 million, up 4% year over. The year-over-year increase was attributable to a rise in fungicide sales and productive seedcare campaigns of the company.
The company’s North American sales increased 11% year over year to $431 million. The upside was driven by gains from the company’s innovative weed-management solutions.
Sales from the Asia Pacific were $425 million, up 22% year over year at CER from the value recorded in the year-ago period. Quarterly sales strengthened on the back of better South Asian weather and the ending of El Nino.
Latin American sales for the quarter came in at $999 million, down 19% year over year. Sales in the region had declined year over year due to lower Brazilian sales volume.
Sales generated from the company’s Lawn and Garden division totaled $140 million, up 4% year over year. Quarterly sales improved due to increased Vector Control solutions demand and robust volume growth for the company’s Pest Management.
Outlook
Syngenta projects that its revenues in fourth-quarter 2016 would be supported by stronger Asia Pacific as well as Latin American sales. For 2016, the company estimates to accrue free cash flow of over $1 billion.
The company also perceives that its deal with ChemChina would open up new opportunities in business. The procedure of procuring regulatory approvals is well underway at this moment.
SYNGENTA AG-ADR Price
SYNGENTA AG-ADR Price | SYNGENTA AG-ADR Quote
Share price of Syngenta was $81.40 per share as on Oct, 25 2016.
Zacks Rank and Other Stocks
Syngenta currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks within the industry that warrant a look include:
AK Steel Holding Corp. currently carries a Zacks Rank #2 (Buy) and has an average earnings surprise of +200.42% over the four trailing quarters.
BASF SE (BASFY - Free Report) currently carries a Zacks Rank #2 and has an average earnings surprise of +31.01% over the last four quarters.
Cabot Corp. (CBT - Free Report) currently carries a Zacks Rank #2 and has an average earnings surprise of +2.07% over the trailing four quarters.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>