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

By  +Follow October 3, 2013 8:18AM
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.

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Results for MON
Stock Signaling
18 Sep 14 07:31:39
Upgrades: $XGTI $BAM $BXP $ARCB $MON $FET $DD $DFT $WYY $BC $HAWK $SVLC $INN $CRI $CQP http://t.co/Vtx6dLy0Nw #investing #watchlist #stock
18 Sep 14 07:07:38
http://t.co/Vv1sYDyeQn chartguy89: Stock Charts: MON Stock Chart $MON $HZNP $VZ $NUGT http://t.co/BMAtsIMRUv
Zonebourse News
18 Sep 14 07:05:12
Les équipementiers automobiles européens soutenus par Credit Suisse http://t.co/Lj9yZbORYc $EO $MON $POM $CON $DAX
18 Sep 14 07:03:06
MON Stock Chart $MON $HZNP $VZ $NUGT http://t.co/1UV0vXUv2T http://t.co/zl4xMV0my2
The Fly
18 Sep 14 07:00:30
$ARCB $MT $BXP $DFT $DD $FET $KSS $MDVN $MON $PTNR On The Fly: Analyst Upgrade Summary: Full Story http://t.co/TY3hCCT9Gm
18 Sep 14 06:52:51
$T Starting to get interesting $VVUS $CMG $ACT $MON $ACT http://t.co/MSCVqK1LxT
Kym L
18 Sep 14 06:10:39
$KSS u/g to buy at $C; $DD ug at $JPM: $FDX p/t raised to 180 at $C; $MON u/g to buy at Stifel: $IOC initiated at Credit Suisse outperform
Mike Richardson
18 Sep 14 06:09:12
Upgraded: $DD, $KSS, $MT, $MON. Downgraded: $BTU. Rite Aid $RAD smashes earnings but lowers guidance, trading -13% in Pre.
Big Options
18 Sep 14 06:07:26
Notable morning upgrades 9-18 - $DD, $KSS, $MON & Downgrades - $AUXL, $BTU, $PIR, $SWN
Karl Eggerss
18 Sep 14 06:00:44
Street #upgrades: $BXP $FET $ARCB $DD $MT $MON $MDVN $DFT $KSS
Jack Damn
18 Sep 14 05:56:12
Large Cap long scalp watch list for 09/18/14: $AAPL $BA & possibly $MON (potential T/L support). http://t.co/wqPGZ1spJo
18 Sep 14 05:49:49
Notable Upgrades so far this morning: $DD, $KSS, $MON. Notable Downgrades so far this morning: $BTU, $OI, $SWN
Stock Market Picks
18 Sep 14 05:28:30
$MON $BXP upgraded by Stifel from Hold to Buy. http://t.co/T3rgcZlJSs $DJIA $DIA $QQQ $SPY #stocks #trading #nasdaq #stockupgrade
Thudder & Wicks
18 Sep 14 05:13:31
$MON #Monitise shares fall as $V #Visa considers stake sale http://t.co/yJ3VfMT6b3 http://t.co/Kki9X64SSI
US Stock Ratings
18 Sep 14 05:12:02
Stifel upgrades $MON from Hold to Buy, target price to $135.0 http://t.co/pkU3ULxBQQ
TheStreet Alerts
18 Sep 14 05:08:05
How Will Monsanto $MON Stock Be Affected Today By This Analyst Upgrade? http://t.co/hTeUDtHJGn
Wesley Harr
18 Sep 14 05:04:11
RT @Briefingcom: $MON: Stifel ups to Buy
18 Sep 14 04:59:21
$MON: Stifel ups to Buy
18 Sep 14 04:55:17
Morning Call $KSS $DD $RAD $MT $MON $FDX $BTU $CLC http://t.co/brCkPyN67W
US Banking News
18 Sep 14 04:36:26
Monsanto Company Stock Rating Upgraded by Stifel Nicolaus $MON http://t.co/BTt2QCx9z8
Media Sentiment
18 Sep 14 04:35:14
$MON received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 50
US Consumer News
18 Sep 14 04:34:43
Monsanto Company upgraded by Stifel Nicolaus to buy. http://t.co/1L6eZwrsN3 $MON #MON
Analyst Ratings
18 Sep 14 04:33:24
Monsanto Company upgraded by Stifel Nicolaus to buy. http://t.co/XNLBGH2SbN $MON #MON
Tom Wrigley
18 Sep 14 04:24:40
$MON 113.69 | U/g to Buy (from Hold), $135 PT -Stifel
Media Sentiment
18 Sep 14 03:14:56
$MON received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 10
18 Sep 14 03:11:33
$MON Monsanto upgraded to Buy from Hold at Stifel :theflyon
Advisory Desk
18 Sep 14 02:08:57
Monsanto $MON raised to Buy vs Hold at Stifel Nicolaus #Rating #upgrade
Trading Masters
18 Sep 14 00:58:45
Struan se positionne à l'achat sur MONTUPET SA pour 15997.8EUR à 53.3259EUR http://t.co/7bbMEyJfRr #Struan $MON
Stock Rocket
17 Sep 14 21:39:33
$NETE Gained 551.93% In The Past 6 Weeks! Major News: http://t.co/PU7GW934W5 $BAESY $BWP $MON
Stock Rocket
17 Sep 14 14:44:13
$NETE Gained 551.93% In The Past 6 Weeks! Major News: http://t.co/h5N34SPJ6o $BAESY $BWP $MON
Daily Contracts
17 Sep 14 14:26:01
Real-Time feed of company contracts, original agreements and executive updates from Monsanto $MON http://t.co/kU9PRQXYS8
organics count
17 Sep 14 12:48:09
RT @StLHandyMan: @HillaryGuess Ties #Bankers #WallStreet & #BigBusiness $Mon >@HillaryClinton #Sanders & @elizabethforma< stand for the peo…
17 Sep 14 11:35:02
@zettacap highest rated Basic Industries companies $FMC $MON $FLR for 9/17/14 #bigdata #sp500 #fintech #basicindustries #stocks
Irma Doucet
17 Sep 14 11:30:28
$MON Is It Time to Buy Monsanto Company Stock? http://t.co/LJTNGBJn1p
James P Worthy
17 Sep 14 11:30:27
$MON Monsanto Company Receives Average Rating of &quot;Buy&quot; from Brokerages (NYSE ... http://t.co/BJYdvQaS1N
Ernesto Villarreal
17 Sep 14 11:17:25
RT @RiskReversal: ICYMI: Tuesday's Notable Options Activity: $YHOO, $QEP, $MON, $SUNE, $FCX, $GTAT http://t.co/1KDsB9HMmr @EnisTaner
17 Sep 14 11:15:52
@HillaryGuess Ties #Bankers #WallStreet & #BigBusiness $Mon >@HillaryClinton #Sanders & @elizabethforma< stand for the people.
Dan Nathan
17 Sep 14 11:12:21
ICYMI: Tuesday's Notable Options Activity: $YHOO, $QEP, $MON, $SUNE, $FCX, $GTAT http://t.co/1KDsB9HMmr @EnisTaner
Tricia Dineen
17 Sep 14 09:23:17
@stanleydandrea Hi Stan: who is in stealth mode ?. lol The LPN tech, HBV ..yea!, $ALNY, $MON contracts, DOD Filovirus agreements ..
RB Trader
17 Sep 14 09:01:17
The big trade in $MON yesterday: #Options, fundamentals and news http://t.co/bAOHXNOy73 $POT $MOS $IPI
RB Tech Social
17 Sep 14 09:01:17
The big trade in $MON yesterday: #Options, fundamentals and news http://t.co/Dx7hK9Y4vj $POT $MOS $IPI
Bastien Huneau
17 Sep 14 08:58:17
@BenCPB oui, je précise que je ne suis pas in sur $ERYP ni sur $NANO, uniquement sur $MON
Bastien Huneau
17 Sep 14 08:31:43
Bob Byrne
17 Sep 14 07:41:47
The Trader Daily http://t.co/AQEBoEOXxL $UNG $SPY $IWM $POT $IPI $MON $MOS
17 Sep 14 07:34:36
DuPont Plans To Increase Its Ethylene Copolymer Production To Tap The Growth In Food ... http://t.co/Gy613GJ67e by Trefis Team $DD $DOW $MON
RB Trader
17 Sep 14 07:01:27
Largest Value Trade #1 $MON APR $115 #Calls SLD @ $5.15 21,650 X vs 528 OI $11.1M in premium Email us for a demo http://t.co/mubt7zjDat
RB Tech Social
17 Sep 14 07:01:27
Largest Value Trade #1 $MON APR $115 #Calls SLD @ $5.15 21,650 X vs 528 OI $11.1M in premium Email us for a demo http://t.co/fesi1oQKes
17 Sep 14 06:49:41
60m $MON Upper Trendline Pressure 114.500 #futures #stocks 09:49:28 AM http://t.co/WZwETG8am0 Signals based... http://t.co/WZwETG8am0
RB Trader
17 Sep 14 06:01:29
Biggest Size Trade: $MON 2015-04-17 $115.0 #Call Market: $5.15 x $5.35 Trade: SLD $5.15 21,650 X vs 548 OI http://t.co/11RUgqXPVP
RB Tech Social
17 Sep 14 06:01:29
Biggest Size Trade: $MON 2015-04-17 $115.0 #Call Market: $5.15 x $5.35 Trade: SLD $5.15 21,650 X vs 548 OI http://t.co/frSjQdVLDs
By  +Follow October 3, 2013 8:18AM



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