Monsanto Co. Earnings: Here’s Why Shares are Down Now

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Monsanto Co. (NYSE:MON) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.39%.

Monsanto Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 1.84% to $1.66 in the quarter versus EPS of $1.63 in the year-earlier quarter.

Revenue: Rose 0.69% to $4.25 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Monsanto Co. reported adjusted EPS income of $1.66 per share. By that measure, the company beat the mean analyst estimate of $1.60. It missed the average revenue estimate of $4.41 billion.

Quoting Management: Rick Parod, president and chief executive officer, commented, “Record sales in our U.S. and international irrigation markets have led to record results through the first nine months of fiscal 2013. We expect a heavier mix of lower margin international sales in the fourth quarter as we continue to recognize revenue on the $39 million order in Iraq, which entered backlog in the second quarter.”

Key Stats (on next page)…

Revenue decreased 22.37% from $5.47 billion in the previous quarter. EPS decreased 39.19% from $2.73 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.33 to a loss $0.35. For the current year, the average estimate has moved up from a profit of $4.57 to a profit of $4.60 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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