logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Monsanto Q4 Losses Worse Than Expected, Announces $930 Million Acquisition

By  +Follow October 3, 2013 8:18AM
Share:
Tickers Mentioned:

Monsanto Co. (MON) announced on Wednesday the results from its fiscal fourth quarter that showed a widening loss and sales that came up short of analyst predictions as sales from the company’s Seeds and Genomics segment decreased.  Meanwhile, the agricultural product giant said that it was spending $930 million to buy farm analytics company The Climate Corp.

For the quarter ended August 31, Creve Coeur, Missouri-based Monsanto reported revenue of $2.20 billion, up  5 percent from $2.10 billion in the same quarter of 2012.  Diluted earnings for the quarter was $249 million, or 47 cents per share, versus a net loss of $229 million, or 42 cents per share, in the year prior quarter.

Wall Street expected a net loss of 43 cents per share on revenue of $2.26 billion.

The company’s sales in its Seeds and Genomics segment declined from $1.20 billion in the 2012 quarter to $1.19 billion.  Within that group, corn seed and traits improved from $588 million to $618 million.  Sales of Monsanto’s genetically modified soybean seeds declined from $142 million in last year’s quarter to $87 million in the recent one.  Total agricultural productivity helped boost sales, climbing rom $2.1 billion last year to $2.2 billion.

However, operating expenses rose from $1.14 billion to $1.2 billion.

Monsanto chairman and chief executive Hugh Grant remained optimistic, saying, “The strength of our broad global portfolio enabled us to deliver a third consecutive year of strong business results, and by building off our proven strategy we're confident the key elements are in place to carry that momentum through to achieve strong business growth in 2014.”

Separately, the company announced that it will pay $930 million in cash for San Francisco-based Climate Corp., a technology company that was the product of Google and other Silicon Valley engineers in 1996.  Climate uses technology to help farmers with growing seasons based upon weather forecasts and data analysis.  Monsanto plans to incorporate the data products into its FieldScripts precision planting platform to provide farmers with weather stats and agronomic data, which is slated for launch in 2014.

“The acquisition is expected to expand on The Climate Corporation’s leadership in the area of data science, which represents the agriculture sector’s next major breakthrough, and will immediately expand both the near- and long-term growth opportunities for Monsanto’s business and Integrated Farming Systems platform,” Monsanto said in a statement today.

CEO Grant’s aforementioned optimism didn’t translate to a rosy outlook in Wall Street’s eyes.  In fiscal year 2014, Monsanto expects to achieve EPS of $5.00 to $5.20 after approximately $0.14 of dilution related to The Climate Corp. acquisition.  Analysts were expecting earnings of $5.31 per share.

Investors initially focused on the earnings miss and soft guidance, sending shares to three-week lows at $101.78 before recovering to end the day at $104.04 for losses of only 0.96 percent on the day.  So far in 2013, shares of MON are up about 12 percent and twice fought resistance at $108.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for MON
Stockaholics
27 Nov 14 23:12:44
Our Penny Stock Pick On $STTK Is Up 128.57% In 2 Days! Major Update: http://t.co/oR27rFfh2v $BAESY $BWP $MON
Stockaholics
27 Nov 14 17:33:02
Our Penny Stock Pick On $STTK Is Up 128.57% In 2 Days! Major Update: http://t.co/oR27rFfh2v $BAESY $BWP $MON
RONALDO CAPETTI
27 Nov 14 16:41:42
2 Weak Notice- RON C aka RONALDO CAPETTI aka $MON…: http://t.co/9PCXZpBvc2
12Stocks.com
27 Nov 14 16:01:20
S&P100 #Stocks Performance $HPQ $TXN $FB $PFE $ORCL $TWX $INTC $AMGN $EXC $VZ $AAPL $MON $WAG $MDT $SPG more@ http://t.co/GA0wxE19nM
anti Monsanto bot
27 Nov 14 14:59:03
RT @WKRBNews: Investors Sell Shares of Monsanto Company on Strength $MON http://t.co/WiD1Wx2aOV
WKRB News
27 Nov 14 14:58:41
Investors Sell Shares of Monsanto Company on Strength $MON http://t.co/WiD1Wx2aOV
12Stocks.com
27 Nov 14 12:59:05
S&P100 #Stocks Performance $HPQ $TXN $FB $PFE $ORCL $TWX $INTC $AMGN $EXC $VZ $AAPL $MON $WAG $MDT $SPG more@ http://t.co/GA0wxE19nM
Stockaholics
27 Nov 14 12:57:32
Our Penny Stock Pick On $STTK Is Up 128.57% In 2 Days! Major Update: http://t.co/oR27rFfh2v $BAESY $BWP $MON
pretty_darn_tasty
27 Nov 14 10:53:32
RT @FZucchi: 3600 $MON Dec 130c traded at .08 to open - don't get this unless some1 knows something
FonsieTrader
27 Nov 14 08:55:08
Parabolic Sar Sell Signals 3/4 $HMC $HOG $ISRG $JCI $KEG $KWK $MRCL $MINI $MLM $MNTX $MON $NR $NCLH $NFX $NKE $NTRS http://t.co/qA5RkysXtD
12Stocks.com
27 Nov 14 08:50:57
S&P100 #Stocks Performance $HPQ $TXN $FB $PFE $ORCL $TWX $INTC $AMGN $EXC $VZ $AAPL $MON $WAG $MDT $SPG more@ http://t.co/GA0wxE19nM
Penny Stock Secret
27 Nov 14 06:55:52
This Guy Is Making Millions! Watch This Video Proof Here At http://t.co/SVqoMlijqL .. $BAESY $BWP $MON http://t.co/KZb94DBqvi
TickerChirp
27 Nov 14 01:13:07
Popular Tweets Regarding $MON (Monsanto Co symbol MON) on 11/27/2014 http://t.co/seVrIOWezr
Zonebourse
27 Nov 14 00:43:26
MONTUPET : Nouveau souffle haussier à venir http://t.co/hYK2GKp8CE $MON
HECTOR EZINWOKE
26 Nov 14 21:37:32
RT @ForTraders: Monsanto : Human Rights Campaign HRC Names Monsanto Best Place to Work for LGBT Equality http://t.co/X9BI9O9nYM $MON
4-traders.com
26 Nov 14 21:35:04
Monsanto : Human Rights Campaign HRC Names Monsanto Best Place to Work for LGBT Equality http://t.co/X9BI9O9nYM $MON
Stockaholics
26 Nov 14 21:21:07
Our Penny Stock Pick On $STTK Is Up 128.57% In 2 Days! Major Update: http://t.co/oR27rFfh2v $BAESY $BWP $MON
Kym L
26 Nov 14 17:31:04
$MON working so far, might be ready for another move https://t.co/3loqbgVC5j
Ruth Patrick
26 Nov 14 17:03:05
Todays movers to research $MON $NUAN $STZ $CADX #newsletter http://t.co/pyJlp6aRcC
bluebeecharts
26 Nov 14 16:54:29
$MON Blue Tomahawk alert! I first point out this stock back at $114, updated chart http://t.co/oVJV4ArBZk
Anjelica Mccart
26 Nov 14 16:33:20
Are you looking for winners like $CXW $MON $OGE $SLW #financialnews http://t.co/0sH3ZTxLA2
Demetra Denial
26 Nov 14 16:06:49
#Stock Market Reports you need on $MON $VAL $AMAT $CADX #Stock http://t.co/M8AkSk3DaR
12Stocks.com
26 Nov 14 16:01:20
S&P100 #Stocks Performance $HPQ $TXN $FB $PFE $ORCL $TWX $INTC $AMGN $EXC $VZ $AAPL $MON $WAG $MDT $SPG more@ http://t.co/GA0wxE19nM
Walton Dunham
26 Nov 14 15:07:25
Couple of Stocks you should Watch $BXP $PBF $MON $DO Give it a try http://t.co/iVWaqj8D4t
Wealth Management
26 Nov 14 14:46:57
RT @Brown44Frank: $HOT Stocks to Watch this week $MCD $MON $VFC #wealthmanagement http://t.co/1QHklJyPaX
The Legacy News
26 Nov 14 14:43:02
Traders Sell Shares of Monsanto Company on Strength $MON http://t.co/8unwoGAX39
Frank Prescott
26 Nov 14 14:42:12
$HOT Stocks to Watch this week $MCD $MON $VFC #wealthmanagement http://t.co/1QHklJyPaX
Genia Crist
26 Nov 14 14:34:57
Are you looking for more winners like $EMC $ALK $MON $GRPN View now http://t.co/eAKz7cjHxz
Merideth Walling
26 Nov 14 14:31:25
$TER Seeking the next hot #pennystock $ACAS $MON $ABX #money http://t.co/X19brKJBRK
Andreas Wolf
26 Nov 14 13:27:35
Nice close on $MON today. Hopefully we see some further upside next week
Lynell Dew
26 Nov 14 13:18:30
$PEP Todays Stocks you should Watch $MAA $MON $RT #singedinvestor http://t.co/GHyAy5UoGb
Mellissa Fuentes
26 Nov 14 13:08:11
Looking for research on $ITT $KRO $MON $QLYS Check out http://t.co/4yxH1xzez7
Gussie Robinette
26 Nov 14 13:06:44
This weeks Stocks you should Watch $MON $SLM $BKU $PCLN #wealthmanagement http://t.co/Wi0Q0Acm3h
Rocco Fairbanks
26 Nov 14 13:04:06
$BIIB Get great research on stocks $DVA $MON $IGN Give it a try http://t.co/2jN0QZKCPe
12Stocks.com
26 Nov 14 12:58:57
S&P100 #Stocks Performance $HPQ $TXN $FB $PFE $TWX $INTC $VZ $EXC $ORCL $AMGN $MON $SO $AAPL $MSFT $SPG more@ http://t.co/GA0wxE19nM
Stellan Tharp
26 Nov 14 12:48:37
Insider Trading alerts on $NU $AOL $MON $LGND #personalfinance http://t.co/bRI4uvH2oP
FZucchi
26 Nov 14 12:44:36
3600 $MON Dec 130c traded at .08 to open - don't get this unless some1 knows something
Henrietta Major
26 Nov 14 12:15:12
Are you considering selling $AKAM $MON $SPLK $DF I suggest http://t.co/6sHTWfaIUy
Ewa Hudgens
26 Nov 14 12:14:14
$TJX Are you looking to buy $RVBD $MON $RT #economy http://t.co/5CwRcDHsg3
Stockaholics
26 Nov 14 12:02:32
Our Penny Stock Pick On $STTK Gained 171% And Closed up Over 85%! Huge News: https://t.co/MMLz0V8NAH $BAESY $BWP $MON
RONALDO CAPETTI
26 Nov 14 11:52:34
Wake N Bake - RON C aka RONALDO CAPETTI aka $MON…: http://t.co/ORkYtVoTaN
Janella Butler
26 Nov 14 10:32:59
$MON Get research on $NBR $PBI $LGND #liquidity http://t.co/FpKshr1Vz8
Hilde Phipps
26 Nov 14 10:14:55
Sick and Tired of losing money on $CMCSA $MON $BRCM $CSIQ #StockMarket http://t.co/zC1HUNDHaw
Foster Corral
26 Nov 14 10:13:32
Are you Bearish on these #stocks $MON $PETM $DUK $GOOG Goto http://t.co/AOCBpELyPc
Fermin Espinal
26 Nov 14 10:09:03
$MON Wow. Great #Stock #Research on $SYMC $AMAT $LIVE #investing http://t.co/ZbByoChoHJ
Penny Stock Secret
26 Nov 14 10:03:39
$71,000 in ONE TRADE!! By Follwing Their Signals More Info Here http://t.co/SVqoMlijqL .. $BAESY $BWP $MON
Audrey Machado
26 Nov 14 09:50:56
Get Free research on $ALK $MON $TCB $CSIQ View now http://t.co/UvbG2KaKfS
Astrid Link
26 Nov 14 09:21:27
Get #Pennystock Research on $WLL $MON $DSW $RAX #overvalued http://t.co/OAO9lPQ3Yh
ReleaseTEAM Canada
26 Nov 14 09:17:13
RT @NormanRedmond: Todays movers to research $MON $LAMR $CNQR $IBM Try this http://t.co/mTyUGwu1Uk
Kristian Redmond
26 Nov 14 09:13:23
Todays movers to research $MON $LAMR $CNQR $IBM Try this http://t.co/mTyUGwu1Uk
				
				
By  +Follow October 3, 2013 8:18AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.