Bayer beats Q3 profit forecast on strong herbicide sales
Agriculture and pharmaceuticals company Bayer (OTC:BAYRY) on Tuesday reported better-than-expected quarterly earnings as higher prices for glyphosate-based weedkillers made up for a decline in sales of its stroke prevention pill Xarelto.
The German company said in a statement third-quarter adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 17.3% to 2.45 billion euros ($2.45 billion), above analysts’ average estimate of 2.31 billion euros posted on the company’s website.
Finance chief Wolfgang Nickl said year-on-year sales growth was mainly driven by higher prices for glyphosate but prices had already begun to drop during the third quarter.
“We expect them to normalize further in the fourth quarter,” he said.
Bayer said its full-year outlook issued in August still stood, but it added that cost inflation would continue next year. The shares fell 2.3%, erasing gains over the previous two trading sessions as analysts voiced concerns over the cost outlook.
Bayer has been hit by litigation costs over cancer claims by mostly individual users of glyphosate-based weedkiller. But demand for the product class from farmers, the crop science unit’s main customer group, has not been dented by the legal disputes.
BAYER AG Technical Analysis: Daily Chart
In the daily charts, BAYER AG is trading in an up channel. BAYER AG is currently trading below 100 days SMA & above 20 and 50 days SMA.
RSI is in buying zone which indicates bullishness. MACD is currently above zero which indicates bullishness.
Its immediate support is 51.54 & the resistance level is at 53.10.
BAYER AG will trade in an up channel until there is trend reversal.
How to Trade BAYER AG this Week:
BAYER AG will follow the uptrend until there is trend reversal. So, remain bullish on BAYER AG