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Tale of the Tape

Zacks Equity Research

Monsanto (MON) Beats Q4 Earnings and Revenues
October 05, 2016


Trades from $3

Monsanto Company (MON - Analyst Report) has carved a name for itself in the global agricultural chemicals’ industry. By conducting trade, the company tries to enhance the yield and quality of several commercial and non commercial agricultural crops such as cotton, soybean and corn.

Sluggish global economy, lower investments in agricultural inputs, volatile weather patterns, and sturdy competition in grain exports have been putting pressure on agricultural chemical companies like MON.

Currently, MON has a Zacks Rank #3 (Hold), but that could definitely change after the release of its upcoming earnings report. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: MON reported adjusted earnings of 7 cents per share in fourth-quarter fiscal 2016, on an ongoing basis. The Zacks Consensus Estimate was of loss of 2 cents per share.

Revenue: MON posted revenues of $2,562 million, exceeded the Zacks Consensus Estimate of $2,354 million.

Key Factors: MON anticipates to generate adjusted earnings within the range of $4.50-$4.90 per share in fiscal 2017, on an ongoing basis. The company estimates to accrue free cash flow roughly within the range of $1.4-$1.6 billion in the upcoming fiscal year. MON aims to underpin its business on the back of improved core seeds and genomics business, strategic management of agricultural productivity segment’s trade, meaningful restructuring and appropriate investments.

The company intends to close its deal with Bayer AG (BAYRY - Analyst Report) by fiscal 2017-end.  

Stock Price:  At the time of writing, the stock price of MON was up nearly 0.10% ($0.10) in the pre-market trade on Nasdaq. Clearly the initial reaction to the release is positive. We view the company’s better-than-expected fourth-quarter fiscal 2016 results as the primary reason responsible for this positive sentiment.

MONSANTO CO-NEW Price and EPS Surprise



Share price of the company was $102.15 per share as of Oct 4, 2016.

Check back our full write up on this MON earnings report later!

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