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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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for MON
Capital Market Labs
3 May 15 11:45:36
Largest Chemicals Stock Buy-backs 1: $MON 2: $ASH 3: $SHW Chart: http://t.co/XB6mN0JrwP http://t.co/QL2wEhA8mT
Capital Market Labs
3 May 15 11:24:13
$DOW vs. $MON vs. $PX Compared Across 9 Critical Measures http://t.co/02qHgylNOA http://t.co/6qHFOuOaAX
Paula Bartholome
3 May 15 11:17:42
RT @foodawakenings: More headwinds for $MON: Colombia May Prohibit Fumigations with Monsanto's Glyphosate - http://t.co/XvD2dLi0JH
Robyn O'Brien
3 May 15 11:12:39
More headwinds for $MON: Colombia May Prohibit Fumigations with Monsanto's Glyphosate - http://t.co/XvD2dLi0JH
DennyT
3 May 15 10:56:33
MON Mechel Steel Group OAO Quotes Click Here -> http://t.co/DfAwzx0F3T Trending $MON $FXI $JPM $GS #MON #share #nasdaq
IH NASDAQ OMX
3 May 15 10:54:04
HTD iShares iBoxx High Yield Corporate Bond Fund Short Sales Click Here -> http://t.co/Q7nNzlY7r5 Trending $HTD $AVGO $MON $PNRA #HTD…
IH NASDAQ OMX
3 May 15 10:50:04
FSENX Fidelity Select Energy P/E Ratio Click Here -> http://t.co/YlLmy2Rzsx Trending $FSENX $CSCO $HPF $MON #FSENX #pennystocks #share
leahanne
3 May 15 10:48:04
DIA SPDR DJ Industrial Average ETF Trust Prev Close Click Here -> http://t.co/qHSZR9ShHt Trending $DIA $MON $BWP $TBT #DIA…
lookn4wins
3 May 15 10:45:05
AEM Agnico Eagle Mines Ltd. 52Wk High Click Here -> http://t.co/i5gjNMo5BD Trending $AEM $PVSP $MON $AMZN #AEM #investing #invest
Penny Stock Secret
3 May 15 09:53:38
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3 May 15 09:31:25
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12Stocks.com
3 May 15 05:33:17
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12Stocks.com
3 May 15 05:32:09
S&P100 #Stocks Performance $USD $GILD $MON $BIIB $AAPL $LOW $INTC $AIG $HPQ $HD $NSC $GD $TXN $NKE $EBAY more@ http://t.co/cKkr8csQUU
Francisco de la Lama
3 May 15 00:02:23
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Capital Market Labs
2 May 15 22:18:17
Largest Chemicals Stock Buy-backs 1: $MON 2: $ASH 3: $SHW Chart: http://t.co/XB6mN0JrwP http://t.co/DOOAIklNW4
StockenheimerSchmidt
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Jake13
2 May 15 21:47:04
BRZU BroadSoft Inc. 52Wk High Click Here -> http://t.co/PYXgvj86GD Trending $BRZU $XIV $TSLA $MON #BRZU #nasdaq #stock
Stock Rocket
2 May 15 21:18:46
Our Stock Pick On $THCZ Is Up 587.69% From Our Initial Release! Major News: http://t.co/Wvu7rPUNzU $BAESY $BWP $MON
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2 May 15 20:43:16
Our Winning Stock Alerts Gained Over 3115% In 6 Months! Huge News: http://t.co/bsG1ysXGSP $BAESY $BWP $MON
Penny Stock Secret
2 May 15 20:18:28
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SmallCaps
2 May 15 20:02:05
http://t.co/unJPNROhb4 <- Awesome video on how timothysykes went from $12,000 to $1.65 MILLION trading stocks! $WTI $MON $COLM $VGK
SmallCaps
2 May 15 19:46:31
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Capital Market Labs
2 May 15 19:09:17
$DOW vs. $LYB vs. $APD vs. $MON Compared Across 9 Critical Measures http://t.co/P09ScbDnKN http://t.co/xy4NR65EKl
Stock Dawgzz
2 May 15 19:07:34
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Investors Hangout
2 May 15 19:02:38
XIV Materials Select Sector SPDR P/E Ratio Click Here -> http://t.co/GVBJh4MuHT Trending $XIV $VXX $MON $USO #XIV #investing #finance
Jake13
2 May 15 18:55:04
MON Monsanto Co. Chart Click Here -> http://t.co/WwIVJTXaTp Trending $MON $LNKD $ABC $WFC #MON #finance #pennystocks
IH NASDAQ OMX
2 May 15 18:55:03
MON Monsanto Co. Chart Click Here -> http://t.co/S1bw4aqERx Trending $MON $LNKD $ABC $WFC #MON #finance #pennystocks
Emylers
2 May 15 18:52:06
HAL Halliburton Co. P/E Ratio Click Here -> http://t.co/d6n0WU4x0g Trending $HAL $MON $TLT $AAL #HAL #finance #pennystocks
Stockaholics
2 May 15 18:15:48
Our Penny Stock Pick On $TLFX Has Gained 44% In The Past 2 Days! Big News: http://t.co/lfyqjFWSk5 $BAESY $BWP $MON
Capital Market Labs
2 May 15 17:14:58
$DD vs. $MON vs. $APD vs. $PX Compared Across 9 Critical Measures http://t.co/uOzy2ObLyN http://t.co/FCQYDKhm4t
Capital Market Labs
2 May 15 16:15:55
Largest Chemicals Stock Buy-backs 1: $MON 2: $ASH 3: $SHW Chart: http://t.co/XB6mN0JrwP http://t.co/KmaMa1pdpt
TNgCapital
2 May 15 15:19:03
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deafdaytrader
2 May 15 14:54:01
For Options $RAD $KO $LOW $VLTC $PG $NKTR $MON $LUV $PDLI $MOS $VLO $WETF $EXPE $TRN $KR $XLP $HRB $NWL Nice bottom
Lucky Jimmy
2 May 15 13:00:05
TRV The Travelers Cos., Inc. Last Trade Click Here -> http://t.co/XZpoRFhRkG Trending $TRV $MON $XLNX $IBM #TRV #nasdaq #stocks
DennyT
2 May 15 12:55:12
MTL Mechel Steel Group OAO Ask Size Click Here -> http://t.co/kgm69bouWj Trending $MTL $HZNP $MON $RCPI #MTL #stock #share
Lucky Jimmy
2 May 15 12:55:05
MON Monsanto Co. Volume Click Here -> http://t.co/iQa7Tm4Yry Trending $MON $HEDJ $IDRA $ABT #MON #tradeideas #share
Emylers
2 May 15 12:52:04
INTC Intel Corp. Stock Forum Click Here -> http://t.co/skK8MQGxIK Trending $INTC $XLI $FB $MON #INTC #tradeideas #nasdaq
ur-trading
2 May 15 11:20:53
$MON http://t.co/htxZmNAhap
Juan Moreno
2 May 15 11:05:11
Monsanto, Syngenta antitrust issues "not insurmountable," analyst says http://t.co/H22F981OMr $MON, $SYT
Javier Blas
2 May 15 09:51:42
RT @BNCommodities: Monsanto still has its heart set on the biggest deal: http://t.co/amB90Bwp7T by @blsuth $MON $SYT RT @BloombergDeals
Bluegrass Capital
2 May 15 09:33:19
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Stockaholics
2 May 15 08:22:41
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Capital Market Labs
2 May 15 07:27:23
$PX vs. $MOS vs. $ECL vs. $MON Compared Across 9 Critical Measures http://t.co/pbpAlJ6hZV http://t.co/D9lIeNy84b
BN Commodities
2 May 15 07:05:26
Monsanto still has its heart set on the biggest deal: http://t.co/amB90Bwp7T by @blsuth $MON $SYT RT @BloombergDeals
StockenheimerSchmidt
2 May 15 06:52:32
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2 May 15 06:29:51
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Stock Rocket
2 May 15 06:25:13
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Capital Market Labs
2 May 15 05:25:21
$PX vs. $MON vs. $APD vs. $MOS Compared Across 9 Critical Measures http://t.co/8INubnB0Xl http://t.co/P5ufblQtjR
Derald Muniz
2 May 15 05:11:40
Submarine Basket: http://t.co/vOuxlRPKDO $AXP $BWA $CAT $EXPE $HSY $MON $PNRA $RL $SNDK $URI $MDCA $KR
				
				
By  +Follow October 3, 2013 8:18AM
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