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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
Dennis Alagic
24 Oct 14 17:13:36
RT @Fibonacciqueen: $MON key decision in time/price http://t.co/4DNEPRejNt
Carolyn Boroden
24 Oct 14 16:19:52
$MON key decision in time/price http://t.co/4DNEPRejNt
Traderific
24 Oct 14 13:33:47
BUY $KLAC 75.90, BUY $MON 113.28, COVER $MSFT 46.13, BUY $NSC 109.39. More stock tips & details at: http://t.co/dbnFjvTVZP
Stockaholics
24 Oct 14 13:25:43
Our Penny Stock Alerts Gained 371% In 2 weeks! Sign Up For Free Text Alerts For Our New Pick: http://t.co/dLDRavoCi4 $BAESY $BWP $MON
ur-trading
24 Oct 14 08:56:52
$MON http://t.co/KVRA5yN6Cp
David Durand
24 Oct 14 07:58:25
$MON top being confirmed. Down in up market again.
finsents
24 Oct 14 07:46:36
$MON:US Monsanto Company Short Interest Down 10.3% in September (MON) #MONSANTO CO http://t.co/5YQVnhvp65 #SP500
finsents
24 Oct 14 07:40:40
$MON:US Monsanto Company Short Interest Down 10.3% in September (MON) #MONSANTO CO http://t.co/X4nn1cM0D3 #SP500
GMO Truths
24 Oct 14 06:36:43
University of Minnesota funded by Big chemical and biotec companies to say 2,4 D is safe. http://t.co/CoqLoMNmmd #UMN $MON $DOW
GMO Truths
24 Oct 14 06:21:07
@KeithMcCullough How do I determine a buy to cover price on $MON? What events?
finsents
24 Oct 14 05:21:44
$MON:US Monsanto Company Short Interest Down 10.3% in September (MON) #MONSANTO CO http://t.co/aLFwfswOlm #SP500
wininstocks2014
24 Oct 14 05:04:59
MON 112.81 Stock Charts $MON Monsanto Co. (NYSE) Last Updated: 10/24/2014 07:05:00 MON Stock Chart - 1 Month h http://t.co/LG4UwWjd5t
finsents
24 Oct 14 04:19:41
$MON:US #MONSANTO CO 24Oct Negative #NewsSentiment http://t.co/3zwobAQOh5 #Russell200
finsents
24 Oct 14 04:16:09
$MON:US #MONSANTO CO 24Oct Negative #NewsSentiment http://t.co/cdizoL74Zr #SP500
Ticker Report
23 Oct 14 22:58:46
Monsanto Company Short Interest Down 10.3% in September $MON http://t.co/nDfABS6Ous
Stock Relay
23 Oct 14 22:30:21
$LTRX Company Info Click Here: http://t.co/qGpFUNcVDn Also See: $EEA $MON $REN $USLV ~
12Stocks.com
23 Oct 14 16:02:29
S&P100 #Stocks Trend $GD $AMGN $FB $AAPL $BMY $UNH $SPG $CVS $MO $COST $PM $MON $AEP $SO $WAG $PEP $MMM $HON @ http://t.co/n4QZIDxy7w
12Stocks.com
23 Oct 14 12:59:19
S&P100 #Stocks Trend $GD $FB $AMGN $AAPL $BMY $CVS $UNH $MO $SPG $PM $COST $AEP $MON $SO $WAG $PEP $MMM $HON @ http://t.co/cKkr8cKsju
Fish4Bucks
23 Oct 14 11:56:24
60m $MON 112.910 Price action Crossing Down Median Support #stocks Signals based on the Fish4Bot indicator P... http://t.co/WZwETG8am0
Fish4Bucks
23 Oct 14 10:23:22
60m $MON 112.920 Price action Crossing Down Median Support #stocks Signals based on the Fish4Bot indicator P... http://t.co/WZwETG8am0
Stock Moo
23 Oct 14 09:55:17
$mon: Monsanto Company Named One of the World’s Best Multinational Workplaces http://t.co/kUf4yVnRMJ
Deppilf flippeD
23 Oct 14 09:33:13
Its amazing how $mon has been ahead of $SPY moves a couple days ahead. new canary in trading field? $GS $QQQ
Sicarius
23 Oct 14 09:24:06
$MON is good play on corn coming back.
Bastien Huneau
23 Oct 14 09:19:27
@RomainLantourne oui les équipementiers ont la cote en ce moment $POM et $MON mes copaines.
Bastien Huneau
23 Oct 14 09:01:08
@Cytiz et hésite pas a regarder les analyse de $POm et $MOn sur IVT. deux supers valeurs du moment (et depuis longtemps ! )
12Stocks.com
23 Oct 14 08:51:39
S&P100 #Stocks Trend $GD $AMGN $FB $AAPL $CVS $UNH $MO $BMY $COST $PM $SPG $MON $AEP $SO $WAG $PEP $MMM $HON @ http://t.co/n4QZIDxy7w
Bastien Huneau
23 Oct 14 08:49:54
@Cytiz regarde $POM et $MON elles sont dans de belles dynamiques.
Fish4Bucks
23 Oct 14 08:38:31
60m $MON 112.930 Price action Crossing Down Median Support #stocks Signals based on the Fish4Bot indicator P... http://t.co/WZwETG8am0
David Durand
23 Oct 14 07:16:04
Commented on StockTwits: And weak in strong market today. "@MorpheusTrading: $MON - Possible short setup at conve... http://t.co/noREo1x0Q8
Jack Perrin
23 Oct 14 07:04:41
RT @brpierce51: @KeithMcCullough Does that apply to chasing losers? It's ok to double or triple down on losing short signals, right? #IWM $…
Fish4Bucks
23 Oct 14 06:54:02
60m $MON 112.901 Price action Crossing Down Median Support #stocks Signals based on the Fish4Bot indicator P... http://t.co/WZwETG8am0
David Durand
23 Oct 14 06:45:48
$MON down in up market. Bearish.
Brian Pierce
23 Oct 14 06:26:49
@KeithMcCullough Does that apply to chasing losers? It's ok to double or triple down on losing short signals, right? #IWM $CACC $CHRW $MON
Market Int Center
23 Oct 14 06:16:00
Monsanto $MON Trading Near $112.57 Support Level ( http://t.co/THFPxhIwP1 )
Deppilf flippeD
23 Oct 14 05:53:48
RT @MorpheusTrading: Why Monsanto is setting up for swing trade short sale entry $MON #stocks http://t.co/6oFCfbpRyy
Morpheus Trading Grp
23 Oct 14 05:50:34
Why Monsanto is setting up for swing trade short sale entry $MON #stocks http://t.co/6oFCfbpRyy
finsents
23 Oct 14 04:16:52
$MON:US #MONSANTO CO 23Oct Negative #NewsSentiment http://t.co/fkh83P9xLV #Russell200
finsents
23 Oct 14 04:15:40
$MON:US #MONSANTO CO 23Oct Negative #NewsSentiment http://t.co/MB0q2KumfP #SP500
12Stocks.com
23 Oct 14 03:01:41
Weekly S&P100 #Stocks Trend $AMGN $UNH $GD $FB $BMY $AAPL $CVS $COST $PM $MON $MO $SPG $AEP $SO $PEP $WAG $HON @ http://t.co/n4QZIDxy7w
WKRB News
23 Oct 14 01:17:39
Monsanto Company Short Interest Down 10.3% in September $MON http://t.co/AcEgWNwBdH
Bastien Huneau
23 Oct 14 00:58:43
$MON j'ai bien l'impression que j'ai été sorti au plus bas du jours... Grrrrrrrrrr !
US Banking News
23 Oct 14 00:39:02
Monsanto Company Sees Significant Decrease in Short Interest $MON http://t.co/QF3iC7GE3j
Stockaholics
23 Oct 14 00:36:38
Our Penny Stock Picks Gained 371% In 2 Weeks! Get Our Next Pick Early: http://t.co/z2noBUWrEP $BAESY $BWP $MON
Bastien Huneau
23 Oct 14 00:29:28
$MON je sors à 0
Garrett ✊ Smith
22 Oct 14 23:24:29
RT @InsiderWire: HUGH GRANT, Chairman & CEO of Monsanto Company Sells $10,114,515 Worth of $MON - #Form4 #InsiderTrading - http://t.co/5ak3…
Garrett ✊ Smith
22 Oct 14 23:24:15
RT @OTP_Group: DewDiligence: $MON’s CEO sold $10.1M of stock two days ago:: DewDiligence http://t.co/Bsc0saL5h2
Garrett ✊ Smith
22 Oct 14 23:24:00
RT @AmericanBanking: Traders Buy High Volume of Put Options on Monsanto Company $MON http://t.co/sJHLNyWA7n
FinSentS SP500
22 Oct 14 22:43:43
$MON:US #MONSANTO CO 23Oct Negative #NewsSentiment #SP500
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
				
				
By  +Follow October 3, 2013 8:18AM
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