Corteva Inc. (NYSE: CTVA), a seed and crop protection supplier, released its financial results for the second quarter last week. The company’s sales have grown dramatically, and the management announced that it is expanding the buyback program to further benefit the company.
The new buyback program for Corteva Inc. (CTVA) is set at $1.5 billion, demonstrating the company’s confidence in its future. The company’s management released an increase of 7.7% in dividends a month earlier. This is a significant increase is being recorded for the first time since the IPO in 2019.
In the second quarter, Corteva’s sales rose 8% year over year to $5.6 billion. During the same period, GAAP earnings per share rose 36% to $1.37, and net income increased 27.6% to $970 million. Growth for CTVA Stock was driven by increased acreage in North America, combined with strong demand for Enlist soybeans. Further, sales were boosted by increased demand for crop protection products.
The Latin American market was the most successful for Corteva Inc. (CTVA) in the second quarter, with sales growing 14% year over year. In this region, CTVA increased its market share in Brazil for second-crop maize. Sales in North America’s largest market increased by 7% year-over-year.
Corteva Inc. (CTVA) has received approval to use a variety of its products in new regions during the first half of 2021. In particular, the herbicide Arylex was licensed in 12 countries, and the insecticide Pyraxalt became available in two more countries.
CTVA stock also raised its forecasts for revenue and profit for the remainder of 2021. In line with new expectations, revenue will rise to $15.2 – $15.4 billion (previously forecast was $14.6 – $14.8 billion), and profit will range from $2 to $2.1 per share (earlier forecast was $1.85 – $1.95 per share).
It is noteworthy that management sees 2021 as a crucial growth year for CTVA stock. The new products should boost sales of Enlist’s crop protection system, and the Enlist soybean seeds are poised to penetrate 35% of US soybean acres this year.