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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
GMO Truths
31 Oct 14 13:15:08
Nearly $8 Million Raised to Defeat Maui GMO Ballot Initiative http://t.co/DbC4LrjL3G $MON
GMO Truths
31 Oct 14 12:43:33
Market Int Center
31 Oct 14 12:37:14
Potential Monsanto $MON Trade Has 6.29% Downside Protection ( http://t.co/JRUxyK1R4a )
GMO Truths
31 Oct 14 12:35:53
Monsanto Hid Decades Of Pollution http://t.co/PrnNHIVR7e $MON
GMO Truths
31 Oct 14 12:34:58
@KeithMcCullough 230 shares of $MON shorted — a lot of money for little me. What do I look for to buy to cover? TIA
Keith McCullough
31 Oct 14 12:09:06
@GMOTruths good example of a name I signaled cover on (lower) and re-issued the sell signal higher this morn $MON
GMO Truths
31 Oct 14 12:08:16
Monsanto's first product was saccharin, sold to Coca-Cola as an artificial sweetener, a known carcinogen. $MON $KO
Keith McCullough
31 Oct 14 12:08:07
RT @GMOTruths: @KeithMcCullough I shorted and have bought to cover on $MON. Any advice?
GMO Truths
31 Oct 14 12:05:32
@KeithMcCullough I shorted and have bought to cover on $MON. Any advice?
31 Oct 14 10:00:52
Our Penny Stock Newsletter Alert On MGON Closed up 112.5% Today! Major News: http://t.co/dvxYQnSJab $BAESY $BWP $MON
GMO Truths
31 Oct 14 09:12:58
Subsidized American GMO corn is sold for the manufacture of HFCS at artificially low cost. $MON Monsanto, farmers depend on the subsidy.
GMO Truths
31 Oct 14 08:53:32
Be civil, hire Blackwater, says Monsanto. http://t.co/bpbiECMz4s … https://t.co/zixh0NDpqP … $MON http://t.co/2bBEeDRMZO
Penny Stock Secret
31 Oct 14 07:37:57
The Hottest Way to Make Millions From Stock Market.Click HERE http://t.co/SVqoMkrw2z .. $BAESY $BWP $MON
31 Oct 14 07:30:10
Monsanto : Invests to Transform Plant Breeding and Deliver Improved Ag Solutions to Farmers http://t.co/X9HgQiTbxX $MON
Chris Kader
31 Oct 14 07:03:07
@talkequities @wandy922 Can never go wronf taking some off the table. Man, you guys need to look at $MON harder....
David schumaker
31 Oct 14 04:39:20
RT @JMVala_Trades: A couple of ideas on sectors and some setups to watch. $BIDU, $GPRO, $MON, $XOM https://t.co/XLIqsrVkxQ
Zonebourse News
31 Oct 14 04:05:15
Le point sur les changements de recommandations à Paris http://t.co/8DMG9W852E $SAN $MON $ALU $ETL $TEC $STM $AF $UBI $CC $ETAR
Binary System
31 Oct 14 03:59:50
RT @SeekingAlpha: Mosanto's Solid Fundamentals And High Growth Should Entice Investors http://t.co/owWAgSNiSE $MON
Forex News & Tips
31 Oct 14 03:59:49
RT @SeekingAlpha: Mosanto's Solid Fundamentals And High Growth Should Entice Investors http://t.co/owWAgSNiSE $MON
31 Oct 14 03:57:54
RT @SeekingAlpha: Mosanto's Solid Fundamentals And High Growth Should Entice Investors http://t.co/owWAgSNiSE $MON
Quantpost Basic Mats
31 Oct 14 03:52:02
$MON News: "Mosanto's Solid Fundamentals And High Growth Should Entice…" http://t.co/BEnAcBIc3m Board view: https://t.co/aR1PbltGoD
Seeking Alpha
31 Oct 14 03:52:00
Mosanto's Solid Fundamentals And High Growth Should Entice Investors http://t.co/owWAgSNiSE $MON
Dimitri Delmond
31 Oct 14 03:42:47
#Berenberg entame le suivi de #Montupet : achat, 67,50€. "Action dopée par les rumeurs de M&A, bien que chère". $MON
31 Oct 14 02:14:10
Our Penny Stock Newsletter Alert On MGON Closed up 112.5% Today! Major News: http://t.co/gDCrqEFOy6 $BAESY $BWP $MON
Bastien Huneau
31 Oct 14 00:45:28
Les mecs qui arrivent après la guerre LOL " #Montupet $MON Berenberg apprécie ce dossier qu'il initie à l'achat http://t.co/8Fu8U8srWj
30 Oct 14 23:55:43
Partner Jet $PJT.V is up 183% this week after Q3 release with more gains coming. Find out why: http://t.co/MEpEjkCm4H $MON $RGLS $APO
Cody Nardy
30 Oct 14 21:16:41
RT @JMVala_Trades: A couple of ideas on sectors and some setups to watch. $BIDU, $GPRO, $MON, $XOM https://t.co/XLIqsrVkxQ
30 Oct 14 20:59:53
A couple of ideas on sectors and some setups to watch. $BIDU, $GPRO, $MON, $XOM https://t.co/XLIqsrVkxQ
30 Oct 14 20:43:17
Our Penny Stock Newsletter Alert On MGON Closed up 112.5% Today! Major News: http://t.co/dvxYQnSJab $BAESY $BWP $MON
30 Oct 14 19:12:48
10/31 Pivot Scan - $SPY $DIA $ULTI $FLT $UDOW $FFIV $KSU $MON $JNJ $ASH $FOSL $AXP $XRT $INTU $SAVE $STX $VZ http://t.co/Zhxx2txOPm
Chris Kader
30 Oct 14 19:00:18
@jimcramer. Split off of $MON into high-technology information and data analytics company and traditional GMO/seed competitor?
Garrett ✊ Smith
30 Oct 14 15:44:23
#ThrowbackThursday When Monsanto hired Blackwater to spy on activists. $MON … http://t.co/qndSUT8NOu
Garrett ✊ Smith
30 Oct 14 14:57:03
$MON I haven't bought to cover of my short of Monsanto. It rallied with the dollar and everything else. #Patience.
Quantpost Basic Mats
30 Oct 14 11:46:28
$DD $DOW $MON News: "Are XLB And Materials Overpriced? $APD $DD $DOW $ECL $LYB …" http://t.co/WHLPaOq4NU Board view: https://t.co/CUSr4cQaa8
Seeking Alpha
30 Oct 14 11:46:25
Are XLB And Materials Overpriced? http://t.co/Z0V76wix48 $APD $DD $DOW $ECL $LYB $MON $PPG $PX $XLB
Irma Doucet
30 Oct 14 11:01:09
$MON Monsanto Hired This Guy To Help It Win Over Millennials http://t.co/YOMcsjaNIK
30 Oct 14 10:42:10
VIICQ Closed up 75% Yesterday! Special Update: http://t.co/8A33lxh1RR $BAESY $BWP $MON
30 Oct 14 10:19:32
60m $MON Upper Trendline Pressure 114.200 #futures #stocks 01:19:23 PM http://t.co/WZwETG8am0 Signals based... http://t.co/WZwETG8am0
GMO Truths
30 Oct 14 10:03:02
@KeithMcCullough $MON is back up today, um…
Market Int Center
30 Oct 14 09:22:48
Potential Monsanto $MON Trade Targets 2.30% Return ( http://t.co/v2xFXvZ0ip )
30 Oct 14 08:50:59
S&P100 #Stocks Performance $V $MA $BMY $EXC $GILD $AEP $LLY $ALL $MON $KO $TGT $MRK $DD $PFE $PEP $GD $MET more@ http://t.co/n4QZIDxy7w
30 Oct 14 08:30:03
Monsanto : MEDIA UPDATE: Roundup Ready PLUS™ Diversified Weed Management Solutions Infographic http://t.co/PCnQbe9H1o $MON
30 Oct 14 07:19:11
60m $MON 113.020 Price action Crossing up Median Resistance #stocks Signals based on the Fish4Bot indicator ... http://t.co/WZwETG8am0
Stock Moo
30 Oct 14 06:02:09
$mon: Altria Reports 2014 Third-Quarter and Nine-Month Results; Reaffirms 2014 Full-Year EPS Guidance http://t.co/WWwzGoZqMF
30 Oct 14 05:41:47
Arthur Hill: Dollar Extends Breakout, Gold Extends Break Down, Plus $CSCO, $IMAX, $MON, $PEP and $PLCE http://t.co/i5YsVmEMJo
US Banking News
30 Oct 14 05:40:44
Monsanto Company Receives “A” Credit Rating from Morningstar $MON http://t.co/NwZQaxgvUX
Trading Masters
30 Oct 14 05:26:49
Puff clôture sa position acheteuse sur MONTUPET SA avec un gain de +3.1% http://t.co/tf9PrshOhl #Puff $MON
30 Oct 14 03:32:07
Trending Tweets Related to $MON (Monsanto Co symbol MON) on 10/30/2014 http://t.co/UqN1lT70Ga
30 Oct 14 02:50:08
Monsanto : Board Sets Record and Meeting Date for Next Shareowners Meeting http://t.co/av5JWHUa9D $MON
Trading Masters
30 Oct 14 01:26:06
Puff se positionne à l'achat sur MONTUPET SA pour 1153EUR à 57.65EUR http://t.co/tf9PrshOhl #Puff $MON
By  +Follow October 3, 2013 8:18AM



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