Back to top

Analyst Blog

Monsanto Company (MON - Analyst Report) is set to report fiscal fourth-quarter 2013 results on Oct 2 before the market opens. Last quarter, the company posted a 3.75% positive surprise. Let’s see how things are shaping up for this announcement.

Factors to Consider This Quarter

Monsanto has been delivering strong results over the past few quarters. The company’s increased production, as a result of research and development efforts are proving beneficial. The improved product line based on evolving bio-science technology continues to provide the company a competitive edge over its peers. Global corn business is also on the rise, led by increases in regions like Latin America and Eastern Europe.

Last quarter, management was optimistic of reaching earnings per share range of $4.50–$4.55 in fiscal 2013, reflecting roughly 20% year-over-year growth. Monsanto also maintained its free cash flow expectations within the range of $1.8 billion–$2.0 billion.

Earnings Whispers?

Our proven model does not conclusively show that Monsanto is likely to beat earnings this quarter. That is because a stock needs to have both a positive Zacks Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the case here, as you will see below.

Zacks ESP: The Zacks ESP is 0.0%.

Zacks Rank #3 (Hold): Monsanto carries a Zacks Rank #3 (Hold). However, the Zacks Rank #3 (Hold) when combined with a 0.0% ESP makes surprise prediction difficult. We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement.

Other Stocks to Consider

Here are some other companies you may want to consider, as our model shows they have the right combination of elements to post an earnings beat this quarter:

The Scotts Miracle-Gro Company (SMG - Snapshot Report), with Earnings ESP of +5.26% and a Zacks Rank #2 (Buy).

Huntsman Corporation (HUN - Snapshot Report), with Earnings ESP of +1.85% and a Zacks Rank #3 (Hold).

Praxair Inc. (PX - Analyst Report), with Earnings ESP of +0.66% and a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CTPARTNERS… CTP 13.33 +3.49%
SAIA INC SAIA 45.65 +1.00%
VASCO DATA… VDSI 13.57 +0.67%
AMEDISYS IN… AMED 20.18 +0.10%
FIRSTSERVIC… FSRV 55.66 -0.13%