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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.

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Results for MON
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$DIA News Updated Tuesday, December 1, 2015 10:11:12 PM $ERX $MON $PAAS $XLP https://t.co/1fUFajq9ii
Analyst Actions
1 Dec 15 19:15:01
$MON: Bullish analyst action by Atlantic Equities on Monsanto: https://t.co/sHo2rlHIDY https://t.co/77C7PEya9y
1 Dec 15 18:48:59
RT @WallStJesus: Monsanto is Ready to Break Out ( $MON – NYSE ) https://t.co/c46waRUcGL
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$SLTD Opinions Updated Tuesday, December 1, 2015 9:11:12 PM $OIH $KNDI $MON $DBA https://t.co/Ia8tP1rGYD
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$FXI Company Info Updated Tuesday, December 1, 2015 8:07:13 PM $MON $RSP $NEM $TVIX https://t.co/IU4jmDxi03
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1 Dec 15 16:56:14
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$MMM Stock Message Board Updated Tuesday, December 1, 2015 7:07:17 PM $LUV $SLW $MON $AAPL https://t.co/7Z00C7D0Li
GTLackeyJr CMT
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1 Dec 15 16:33:08
RT @WallStJesus: Monsanto is Ready to Break Out ( $MON – NYSE ) https://t.co/c46waRUcGL
IH News Desk
1 Dec 15 16:28:37
$CTLE News Updated Tuesday, December 1, 2015 7:11:13 PM $JNK $GLD $HJOE $MON https://t.co/HZklZ0zxLH
1 Dec 15 16:22:33
RT @WallStJesus: Monsanto is Ready to Break Out ( $MON – NYSE ) https://t.co/c46waRUcGL
1 Dec 15 16:18:25
RT @WallStJesus: Monsanto is Ready to Break Out ( $MON – NYSE ) https://t.co/c46waRUcGL
1 Dec 15 16:04:54
RT @WallStJesus: Monsanto is Ready to Break Out ( $MON – NYSE ) https://t.co/c46waRUcGL
1 Dec 15 16:04:25
Monsanto is Ready to Break Out ( $MON – NYSE ) https://t.co/c46waRUcGL
1 Dec 15 16:02:38
S&P500 #Stocks Trend $WYNN $MNK $LVLT $MU $LH $MRK $MS $FE $XEC $PFE $TDC $ATVI $CAH $MON $BAC $LEN $VNO $DPS @ https://t.co/RPeaHBHYi0
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S&P100 #Stocks Performance $LLY $UNH $MRK $MS $AGN $GOOGL $PCLN $FB $PFE $DOW $MON $BAC $AMZN $EXC $BMY more@ https://t.co/cKkr8cKsju
Investors Hangout
1 Dec 15 15:51:10
VTI Vanguard Total Stock Market ETF Exchange https://t.co/KWNm1PVdhl $VTI $MON $ARSC $FNMA #VTI #finance #pennystocks
1 Dec 15 15:43:07
MON Monsanto Co. Chart https://t.co/TmovqibO0h $MON $HL $F $AFL #MON #stockmarket #invest
Investors Hangout
1 Dec 15 15:40:37
HZNP Horizon Pharma plc Message Board Posts https://t.co/03SfQU6jyD $HZNP $SLW $MON $DAL #HZNP #stock #investing
Sleek Money
1 Dec 15 14:36:47
Monsanto Company $MON Earns “A” Credit Rating https://t.co/MghOKvPEN8
1 Dec 15 14:22:10
Monsanto Company $MON Earns “A” Credit Rating https://t.co/wlZFYnxYpI
1 Dec 15 14:08:45
RT @KeystoneTrading: if we get below 115 in the $SPY look to the financials and $MON to the short side $$
1 Dec 15 13:00:13
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S&P100 #Stocks Performance $LLY $UNH $PCLN $GOOGL $MS $FB $MRK $PFE $AMZN $AGN $MON $DOW $TWX $BMY $BA more@ https://t.co/cKkr8cKsju
1 Dec 15 12:56:46
A Look At Monsanto $MON | Momentum Trading with RaginCajun https://t.co/o5hgXRxsks
1 Dec 15 12:53:09
RT @foodawakenings: Reuters: Monsanto turns focus to big data, to "offer worried shareholders a new corporate vision." #dumpthejunk http://…
1 Dec 15 12:43:46
RT @foodawakenings: Monsanto posts big quarterly miss, to eliminate 2,600 jobs in cost-cutting plan #dumpthejunk http://t.co/mBrZuyMnzY $MON
1 Dec 15 12:38:06
RT @SpeedyCalls: $MON 97 Calls Buying Activity, expiring in December
$peedy Calls
1 Dec 15 12:37:51
$MON 97 Calls Buying Activity, expiring in December
1 Dec 15 12:36:35
RT @foodawakenings: Insider Selling: Monsanto Company VP Steven Mizell Sells 6,100 Shares of Stock $MON http://t.co/gBNhTc22ml via @Ratings…
1 Dec 15 12:07:59
$MON trailing I'll sell into strength 1.85%
1 Dec 15 11:39:29
RT @iBankCoin4tw: A Look At Monsanto $MON - https://t.co/2arCev3xDL via @RaginCajun https://t.co/w4rh1OlvOO
1 Dec 15 10:28:44
A look at $MON: https://t.co/cskA3LwliJ
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A Look At Monsanto $MON - https://t.co/2arCev3xDL via @RaginCajun https://t.co/w4rh1OlvOO
Analyst Actions
1 Dec 15 09:26:02
$MON: Bullish analyst action by Atlantic Equities on Monsanto: https://t.co/sHo2rlHIDY https://t.co/bqOXZx9lui
1 Dec 15 09:14:49
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By  +Follow October 3, 2013 8:18AM



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