By Joshua Jamerson and Jacob Bunge 

Monsanto Co.'s chief executive gave no formal update Wednesday on a $62 billion takeover proposal from Bayer AG, as the biotech-seed company said its earnings fell more than Wall Street expected amid unforeseen challenges.

Shares rose 2.3% to $103.44 in early trading in New York, as Monsanto Chief Executive Hugh Grant signaled he has been discussing potential strategic alternatives.

The company turned down a $62 billion takeover bid from Bayer AG last month. Mr. Grant said Wednesday that he has been in discussions with Bayer's management and others regarding strategic options over the past several weeks, but gave no formal update on a potential tie-up.

"We continue to believe in the value potential of the right combination, " Mr. Grant said on a conference call discussing the company's third-quarter results. "It's clear Monsanto remains the partner of choice in this industry."

Mr. Grant said that Monsanto's "growth prospects with or without a deal remain strong."

Monsanto said Bayer's offer undervalued the company. The bid, which would be the largest ever corporate takeover by a German firm, would create the world's biggest seed and pesticide business. But Bayer Chief Executive Werner Baumann has been struggling to sway investors following Monsanto's public rejection. He has since reiterated the $122-a-share bid, which Monsanto again rebuffed. Mr. Baumann previously said he plans to continue negotiating with Monsanto in private, The Wall Street Journal reported.

Monsanto said its results were hurt by glyphosate pricing declines, costs related to the delayed launch of its Roundup Ready 2 Xtend soybeans and lower soybean volume due to the delay, India cotton-pricing regulations, and other headwinds.

The company now sees adjusted per-share profit this year at the low end of its $3.36 to $4.14 range. Monsanto also expects gross profit growth from its core seeds and genomics segment to be down about 5%, compared with prior guidance of unchanged from the previous year.

"Our industry is running at a low point in the overall agriculture cycle, " Mr. Grant said.

For the period ended May 31, Monsanto reported a profit of $717 million, or $1.63 a share, compared with $1.14 billion, or $2.39 a share, a year ago. Excluding items, such as restructuring charges and Argentine-related tax matters, earnings per share fell to $2.17. Total sales slid 8.5% to $4.19 billion.

Analysts, on average, projected $2.40 in adjusted earnings per share and $4.49 billion in sales, according to Thomson Reuters.

In its latest quarter, Monsanto saw revenue from seeds and genomics, its biggest business, edged up 0.4% to $3.21 billion. Sales in its agricultural productivity segment, meanwhile, slid 29% to $982 million.

Monsanto said it expects European officials in the "near-term" to approve new biotech soybeans, which have awaited final signoff from EU officials since early this year. The company said it also expects EU officials to grant an 18-month extension for glyphosate, the herbicide it markets under the Roundup brand.

Write to Joshua Jamerson at joshua.jamerson@wsj.com and Jacob Bunge at jacob.bunge@wsj.com

(END) Dow Jones Newswires

June 29, 2016 10:41 ET (14:41 GMT)