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

By  +Follow October 3, 2013 8:18AM
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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.


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Results for MON
12Stocks.com
22 Oct 14 16:01:58
S&P100 #Stocks Trend $GD $AEP $AAPL $CVS $COST $PM $MO $MON $BMY $AMGN $SPG $FB $UNH $SO $PEP $WAG $EXC $ALL @ http://t.co/n4QZIDxy7w
InterCooler
22 Oct 14 15:06:39
Monsanto Company Sees Unusually Large Options Volume $MON http://t.co/3ptZK6tfZY
Luciano Bovo
22 Oct 14 14:45:27
Latest quote for $MON http://t.co/Jc5dK4ROCd via @BloombergNews
US Banking News
22 Oct 14 14:24:16
Traders Buy High Volume of Put Options on Monsanto Company $MON http://t.co/sJHLNyWA7n
Sleek Money
22 Oct 14 14:22:35
Monsanto Company Sees Unusually High Options Volume $MON http://t.co/iFOoYFB2Kd
homesitter_
22 Oct 14 14:10:49
RT @xkit: Please RT > Short Monsanto $MON, Says BluePac's Chris Sommers: http://t.co/DVeOhiGQlt / @SellMonsanto @GMOChannel @GMWatch
US Banking News
22 Oct 14 14:09:07
Monsanto Company Target of Unusually High Options Trading $MON http://t.co/TpsAjnDJSh
On Time Picks
22 Oct 14 14:00:26
DewDiligence: $MON’s CEO sold $10.1M of stock two days ago:: DewDiligence http://t.co/Bsc0saL5h2
GMO Channel
22 Oct 14 13:46:13
RT @xkit: Please RT > Short Monsanto $MON, Says BluePac's Chris Sommers: http://t.co/DVeOhiGQlt / @SellMonsanto @GMOChannel @GMWatch
NASDAQ
22 Oct 14 13:08:13
$MON - Statement of Changes in Beneficial Ownership (4) http://t.co/u1NMSFTnRp
InsiderTradingWire
22 Oct 14 13:05:08
HUGH GRANT, Chairman & CEO of Monsanto Company Sells $10,114,515 Worth of $MON - #Form4 #InsiderTrading - http://t.co/5ak35EWlpx
12Stocks.com
22 Oct 14 12:59:36
S&P100 #Stocks Trend $GD $AAPL $AEP $EXC $CVS $COST $MO $MON $BMY $ALL $SPG $PM $AMGN $FB $TWX $UNH $UPS $SO @ http://t.co/n4QZIDxy7w
Stockaholics
22 Oct 14 11:49:27
Our Penny Stock Picks Gained 371% In 2 Weeks! Get Our Next Pick Early: http://t.co/z2noBUWrEP $BAESY $BWP $MON
Cornholio
22 Oct 14 11:09:28
@KymLang so not a fan of $MON?
Entropy
22 Oct 14 10:39:35
RT @SunAndStormInv: $MON If you don't believe @Hedgeye 's posted interview, take a look at this sick chart: http://t.co/Bgj1yaqJej
David Durand
22 Oct 14 09:51:12
$MON one big fake-out today.
Deppilf flippeD
22 Oct 14 09:19:19
Sold some $115 April calls in $mon to match bet on Sept seller for $11 million bet.
Garrett ✊ Smith
22 Oct 14 08:56:04
@Yeson105 @DrBronner That's $MON reinvestment strategy; why their P/E ratio is still over 20.
12Stocks.com
22 Oct 14 08:54:14
S&P500 #Stocks Trend $ADS $KMX $FE $IRM $MJN $COH $GMCR $PETM $KMB $AEP $TE $AZO $GPC $MON $CMS $KIM $GAS $JWN @ http://t.co/RPeaHBZz9y
12Stocks.com
22 Oct 14 08:51:59
S&P100 #Stocks Trend $AEP $MON $AAPL $FB $MO $COST $SPG $TWX $CVS $BMY $ALL $UNH $PM $HON $UPS $EMR $ABT $AMGN @ http://t.co/n4QZIDxy7w
12Stocks.com
22 Oct 14 08:51:36
S&P100 #Stocks Performance $GD $MDLZ $GOOG $LMT $DOW $GM $EBAY $DVN $APC $AEP $HAL $JNJ $MON $DD $PEP $WAG more@ http://t.co/n4QZIDxy7w
Garrett ✊ Smith
22 Oct 14 08:28:38
RT @SunAndStormInv: $MON If you have not yet shorted it, this up day on no news and lousy prospects in a weak overall market is a gift.
organics count
22 Oct 14 08:17:11
RT @StLHandyMan: $Mon #Monsanto will keep selling seeds treated with pesticides linked to #bee deaths http://t.co/w1goWFAwvy via @stlouisbiz
BlockTradeAlert
22 Oct 14 07:46:38
BLOCK TRADE: $MON 520,000 shares @ $114.15 [10:46:37]
fruity blerghhhs
22 Oct 14 07:24:48
@optionvoyeur You know he does! $MON for example! Lots of evil and greed all wrapped up into one litigious poisonous evil empire.
David Durand
22 Oct 14 07:05:48
$MON If you don't believe @Hedgeye 's posted interview, take a look at this sick chart: http://t.co/Bgj1yaqJej
David Durand
22 Oct 14 06:57:47
$MON If you have not yet shorted it, this up day on no news and lousy prospects in a weak overall market is a gift.
David Durand
22 Oct 14 06:39:30
$MON is still a short here. Rising Bearish Wedge on very significantly declining volume. Up on air. http://t.co/uzXoJImrqc
Fish4Bucks
22 Oct 14 06:29:40
60m $MON Upper Trendline Pressure 113.950 #futures #stocks 09:29:30 AM http://t.co/WZwETG8am0 Signals based... http://t.co/WZwETG8am0
US Banking News
22 Oct 14 06:13:47
Monsanto Company Receives Consensus Buy Rating from Analysts $MON http://t.co/m0zwRFgD68
Bluegrass Capital
22 Oct 14 03:57:31
Seed co's $MON $DD $BAS $BAYN on the hunt for organic pesticides, a $2B market going to a $5B market by 2020 >>> http://t.co/i7JwgaNjg0
Sneha Banerjee
22 Oct 14 03:19:01
Organic farms get new weapons against pests http://t.co/L3gx9csO4L via @WSJ $MON $DOW $DD
12Stocks.com
22 Oct 14 03:01:42
Weekly S&P100 #Stocks Trend $UNH $TWX $AMGN $HON $FB $EMR $BMY $MON $UPS $PM $AAPL $ABT $COST $CVS $MO $AEP @ http://t.co/n4QZIDxy7w
Stockaholics
22 Oct 14 00:48:28
Our Penny Stock Picks Gained 371% In 2 Weeks! Get Our Next Pick Early: http://t.co/z2noBUWrEP $BAESY $BWP $MON
Bastien Huneau
22 Oct 14 00:16:29
$POM et $MON bien orientés suite aux achats d'hier, je vous conseils de positionner un stop à 0 et de viser respectivement 20€ et 55€
HotKeyTrading
21 Oct 14 23:30:08
Unusual Options Activity: Puts: $XLE $PCLN $UAL $DDD $NQ $ORCL $DIS $JPM $FXI $XLI $YUM $JNS $MON $SSO $AIG http://t.co/XQITF0lRKD #spy
Rudy Wolf
21 Oct 14 19:33:53
RT @KeithMcCullough: Contributor Call: Short Monsanto $MON, Says BluePac's Chris Sommers: http://t.co/u5abHWtXRV via @YouTube
12Stocks.com
21 Oct 14 16:01:34
S&P100 #Stocks Trend $AMGN $HON $EMR $UPS $UNH $AAPL $BMY $ALL $ABT $FB $COST $CVS $MO $MON $SPG $AEP $PM $TWX @ http://t.co/n4QZIDxy7w
John Ablemann
21 Oct 14 14:32:41
$MON Monsanto Harvest-Resistant Corn Now Engulfing Most Of Midwest http://t.co/O2Y1Kv2SXT
Scotty
21 Oct 14 14:29:34
$Mon #Monsanto will keep selling seeds treated with pesticides linked to #bee deaths http://t.co/w1goWFAwvy via @stlouisbiz
NASDAQ
21 Oct 14 14:10:29
$MON - Statement of Changes in Beneficial Ownership (4) http://t.co/Bawj9aMSaP
David Durand
21 Oct 14 12:59:48
$MON failing today right at the moving monkey (50 day) average. @KeithMcCullough
12Stocks.com
21 Oct 14 12:59:14
S&P100 #Stocks Trend $UPS $UNH $AAPL $BMY $ALL $FB $COST $CVS $MON $SPG $AEP $PM $TWX $LOW $WAG $MO $MA $HON @ http://t.co/n4QZIDxy7w
DR.THOMPSON
21 Oct 14 12:53:49
.@EquityNYC @DumbLuckCapital like them or not, they will be responsible for the life/death of millions in the next 20 years (Africa). $MON
DumbLuckCapital
21 Oct 14 12:50:58
Majority looks like $MON then $WMT so far. Honorable mentions $INTC and/or one of the other big enablers of Moore's Law. Sounds about right.
DumbLuckCapital
21 Oct 14 12:49:14
RT @EquityNYC: @DumbLuckCapital I'm not sure there is even a close second to $MON, but I'd give an honorable mention to $WMT
EquityNYC
21 Oct 14 12:47:57
@DumbLuckCapital I'm not sure there is even a close second to $MON, but I'd give an honorable mention to $WMT
FundyLongShort
21 Oct 14 12:46:52
@DumbLuckCapital $MON would be one of my candidates. Yours are good choices, too.
EquityNYC
21 Oct 14 12:45:39
@DumbLuckCapital Our entire society is completely based on agriculture productivity (Guns, Germs & Steel). $MON.
Jack Damn
21 Oct 14 12:39:57
Into the close: holding long $GLD (stop 118.28 (adj. to cost) vs. target 127.74). Sold: $MON $FB (entries & exits posted in stream).
				
				
By  +Follow October 3, 2013 8:18AM
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