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Monsanto (MON) to Post Q2 Earnings: What's in the Cards?
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Monsanto Company is scheduled to report second-quarter fiscal 2017 (ended Feb 2017) results before the opening bell on Apr 5.
The company recorded an outstanding positive average earnings surprise of 309.71% over the trailing four quarters. Let’s see how things are shaping up prior to this announcement.
Factors to Play
Over the last six months, Monsanto’s shares yielded a return of 11.01%, outperforming 8.83% growth recorded by the Zacks categorized Agriculture/Products industry.
Higher demand for pioneering biotechnology, breeding, digital agriculture, crop-protection and next-generation agricultural solutions are expected to bolster Monsanto’s revenues in the fiscal second quarter. Also, new agreements inked with Broad Institute (Sep 2016) and Dow AgroSciences (Oct 2016) are likely to generate benefits in the quarter to be reported by enhancing the company’s technological expertise. In addition, Monsanto anticipates generating higher gross margin in the quarter on the back of increased penetration of Intacta, higher corn volumes and sale of some non-core assets.
However, we believe that the above mentioned bullish aspects are likely to be partially shadowed by major headwinds such as sluggish global economy, low investments in agricultural inputs, volatile weather patterns or sturdy competition in the industry.
The Zacks Consensus Estimate for the stock remained unchanged for both fiscal 2017 and 2018 over the last seven days.
By the fall of calendar year 2017, Monsanto anticipates to successfully close its deal with Bayer AG (BAYRY - Free Report) . The deal is presently being scrutinized by various anti-trust regulatory authorities.
Earnings Whispers
Our proven model does not conclusively show that Monsanto is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as we will see below.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks ESP: Monsanto currently has an Earnings ESP of 0.00%. This is because both the Zacks Consensus Estimate and the Most Accurate estimate are valued at $2.76.
Zacks Rank: Monsanto carries a favorable Zacks Rank #2. However, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks that Warrant a Look
Here are two stocks within the industry that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Cliffs Natural Resources Inc. (CLF - Free Report) , with an Earnings ESP of +6.67%, and a Zacks Rank #3.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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Monsanto (MON) to Post Q2 Earnings: What's in the Cards?
Monsanto Company is scheduled to report second-quarter fiscal 2017 (ended Feb 2017) results before the opening bell on Apr 5.
The company recorded an outstanding positive average earnings surprise of 309.71% over the trailing four quarters. Let’s see how things are shaping up prior to this announcement.
Factors to Play
Over the last six months, Monsanto’s shares yielded a return of 11.01%, outperforming 8.83% growth recorded by the Zacks categorized Agriculture/Products industry.
Higher demand for pioneering biotechnology, breeding, digital agriculture, crop-protection and next-generation agricultural solutions are expected to bolster Monsanto’s revenues in the fiscal second quarter. Also, new agreements inked with Broad Institute (Sep 2016) and Dow AgroSciences (Oct 2016) are likely to generate benefits in the quarter to be reported by enhancing the company’s technological expertise. In addition, Monsanto anticipates generating higher gross margin in the quarter on the back of increased penetration of Intacta, higher corn volumes and sale of some non-core assets.
However, we believe that the above mentioned bullish aspects are likely to be partially shadowed by major headwinds such as sluggish global economy, low investments in agricultural inputs, volatile weather patterns or sturdy competition in the industry.
The Zacks Consensus Estimate for the stock remained unchanged for both fiscal 2017 and 2018 over the last seven days.
By the fall of calendar year 2017, Monsanto anticipates to successfully close its deal with Bayer AG (BAYRY - Free Report) . The deal is presently being scrutinized by various anti-trust regulatory authorities.
Earnings Whispers
Our proven model does not conclusively show that Monsanto is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as we will see below.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks ESP: Monsanto currently has an Earnings ESP of 0.00%. This is because both the Zacks Consensus Estimate and the Most Accurate estimate are valued at $2.76.
Monsanto Company Price and EPS Surprise
Monsanto Company Price and EPS Surprise | Monsanto Company Quote
Zacks Rank: Monsanto carries a favorable Zacks Rank #2. However, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks that Warrant a Look
Here are two stocks within the industry that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
The Mosaic Company (MOS - Free Report) , with an Earnings ESP of +10.00%, and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cliffs Natural Resources Inc. (CLF - Free Report) , with an Earnings ESP of +6.67%, and a Zacks Rank #3.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>