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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
22 May 15 02:41:36
$LYB vs. $MON vs. $DOW Compared Across 9 Critical Measures http://t.co/bxoVpxYG8E http://t.co/GddqpGjFla
Capital Market Labs
22 May 15 01:00:39
$LYB vs. $PX vs. $DD vs. $MON Compared Across 9 Critical Measures http://t.co/stoKMfR6Hi http://t.co/xx0SEjQTqB
binaryoptionsocial
22 May 15 01:00:36
RT bosocial RT Jim5011 MON Monsanto Co. Ex-Div Date Click Here -> http://t.co/Y16idRUazt Trending $MON $GDXJ $W… http://t.co/HFvKae1odE
IH News Desk
22 May 15 00:50:05
UWTI VelocityShares 3x Long Crude ETN News Click Here -> http://t.co/8uq9pdfhF9 Trending $UWTI $ZNGA $NRZ $MON #UWTI #share #tradeideas
Stock Forums
22 May 15 00:49:08
TSLA Tesla Motors Inc. 52Wk Low Click Here -> http://t.co/H29eDNquja Trending $TSLA $FXCM $JMEI $MON #TSLA #stockmarket #invest
clayton
22 May 15 00:47:09
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IH NASDAQ OMX
22 May 15 00:46:34
SH ProShares Short S&P 500 Fund Exchange Click Here -> http://t.co/7VCkMBf9ev Trending $SH $MON $KRED $JDST #SH #nasdaq #stocks
PolgarStocks
22 May 15 00:46:08
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Jake13
22 May 15 00:46:05
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binaryoptionsocial
22 May 15 00:45:07
RT anti__Monsanto RT Jim5011: MON Monsanto Co. Ex-Div Date Click Here -> http://t.co/Y16idRUazt Trending $MON $… http://t.co/HFvKae1odE
binaryoptionsocial
22 May 15 00:45:07
RT Jim5011 MON Monsanto Co. Ex-Div Date Click Here -> http://t.co/Y16idRUazt Trending $MON $GDXJ $WBAI $BCS #MO… http://t.co/HFvKae1odE
anti Monsanto bot
22 May 15 00:44:09
RT @Jim5011: MON Monsanto Co. Ex-Div Date Click Here -> http://t.co/wCc9sW8ReV Trending $MON $GDXJ $WBAI $BCS #MON #share #stocks
jim50
22 May 15 00:43:21
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22 May 15 00:43:18
MON Monsanto Co. Tick Click Here -> http://t.co/Ps2mHdgqgO Trending $MON $XLF $BNS $TD #MON #stock #investing
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22 May 15 00:43:17
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22 May 15 00:43:17
MON Monsanto Co. Yield Click Here -> http://t.co/CUibH8TbjG Trending $MON $GALE $DIS $BSX #MON #pennystocks #nasdaq
lookn4wins
22 May 15 00:43:14
MON Monsanto Co. Tick Click Here -> http://t.co/sPfuQ0bWrE Trending $MON $UPRO $WMT $NFLX #MON #stockmarket #pennystocks
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22 May 15 00:43:11
MON Monsanto Co. Company Info Click Here -> http://t.co/WMm9lGiRCI Trending $MON $SSO $FB $SWI #MON #stockmarket #pennystocks
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MA Mastercard Bid Click Here -> http://t.co/lP5XWCm2fE Trending $MA $MON $SWKS $MCP #MA #tradeideas #tradeideas
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KR Kroger Co. Quotes Click Here -> http://t.co/YKqv6YcNEW Trending $KR $FSLR $TAN $MON #KR #invest #nasdaq
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TalkMarkets Recap
22 May 15 00:39:01
#Monsanto Reliving The Past With #Syngenta $MON $SYT Also $CS http://t.co/cDoB2CdgZa
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22 May 15 00:38:36
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BAC Bank Of America Corp. Stock Message Board Click Here -> http://t.co/VUuKFee9Wz Trending $BAC $MON $TQQQ $SCO #BAC #tradeideas…
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22 May 15 00:34:10
BCLI Brainstorm Cell Therapeutics Inc. Company Info Click Here -> http://t.co/8kfH6cJhoT Trending $BCLI $BSX $HPQ $MON #BCLI…
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22 May 15 00:34:07
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Capital Market Labs
22 May 15 00:14:35
$MON vs. $PPG vs. $APD vs. $MOS Compared Across 9 Critical Measures http://t.co/QGG6ozJtHu http://t.co/xFwolf8uva
Capital Market Labs
21 May 15 23:44:41
$MON vs. $ECL vs. $PPG Compared Across 9 Critical Measures http://t.co/waO5FyEseD http://t.co/UmDa3GZcYh
FinSentS SP500
21 May 15 23:18:04
$MON:US Monsanto Reliving The Past With Syngenta #MONSANTO CO http://t.co/nARG4yDrkC #SP500
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21 May 15 22:14:14
Our Penny Stock Alerts Gained Over 3100% In 6 months! Subscribe For Our Upcoming Picks: http://t.co/fuHL8497KQ $BAESY $BWP $MON
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21 May 15 22:12:45
$DRNK Gained 600% In 11 Trading Days! Huge Update On This Monster: http://t.co/DsO93qKXfr $BAESY $BWP $MON
VenomnymouS
21 May 15 18:47:19
RT @gmo917: MONSANTO🔚 #MAM2015 #FueraMonsanto We march against $MON on May 23. Join the nearest #MarchAgainstMonsanto! http://t.co/Rr58h…
TalkMarkets
21 May 15 17:59:37
#Monsanto Reliving The Past With #Syngenta $MON $SYT Also $CS http://t.co/Xmc6w7NqvY
FinSentS SP500
21 May 15 15:20:07
$MON:US Commodities Today: Monsanto's Plan For Syngenta And Oil Companies Settle Over Spill #MONSANTO CO http://t.co/7qpFn07Ccy #SP500
Invest | Donate
21 May 15 12:35:35
@PolgarStocks: WFC Wells Fargo & Co. Volume Click Here -> http://t.co/LTphrxoBzC Trending $WFC $TVSMOTOR.IN $MON $LYB #WFC #finance #inve…
Food Dive
21 May 15 12:24:21
.@MonsantoCo willing to divest @Syngenta's seed business: http://t.co/Sp0T3kvwr5 $MON $SYT http://t.co/4so8sdKEEA
Capital Market Labs
21 May 15 12:19:35
$MON vs. $MOS vs. $APD vs. $PX Compared Across 9 Critical Measures http://t.co/vMoWiyGV5h http://t.co/piyf9XKZHp
Market Int Center
21 May 15 11:31:01
Monsanto $MON Showing Resistance Near $120.60 ( http://t.co/UJQwvRwl3l )
TylerSoliday
21 May 15 10:51:03
RT @deppilf: @TylerSoliday write a SA on your $mon view
Deppilf flippeD
21 May 15 10:50:00
@TylerSoliday write a SA on your $mon view
TylerSoliday
21 May 15 10:48:17
Possible that the advice farmers diligently follow from $MON may turn them into producers who handle bioengineered food, instead of farmers.
TylerSoliday
21 May 15 10:44:33
Swiss tax inversion and access to $SYT global fertilizer market share could be essential to keep $MON afloat, while cutting future costs.
TylerSoliday
21 May 15 10:38:00
$MON divestment of seed business to pass FTC regulations for $SYT acquisition less relevant with emerging "chem/biology" agriculture trend.
Maggie Smith
21 May 15 10:06:03
$MON - Will You March Against Monsanto? Read This First. http://t.co/hr5o6fl8cz
Deppilf flippeD
21 May 15 09:57:17
A long weekend seems reasonable for $mon to close its deal w/ $syt next week. Plus those 13k May 29 $123 calls sitting there.
				
				
By  +Follow October 3, 2013 8:18AM
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