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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
Andrew Kassen
1 Sep 14 12:32:15
RT @seeitmarket: New Post - "September Seasonality: Strong & Weak Trending Stocks" http://t.co/jgXR3GyMqj by @TraderRL23 $ULTA $AMZN $LULU …
Large Void Bot
1 Sep 14 12:00:42
Popular: $ANET, $EWZ, $MON, $FXI, $XLV, $UA, $CSCO
See It Market
1 Sep 14 11:28:40
New Post - "September Seasonality: Strong & Weak Trending Stocks" http://t.co/jgXR3GyMqj by @TraderRL23 $ULTA $AMZN $LULU $PFBX $MON $H
Carmen Hill
1 Sep 14 08:43:08
$MON models trading-day 1.0 in rate of daily change: http://t.co/Lfv0J2UtGi
1 Sep 14 05:26:54
The 10 best analyst rated stocks last week: $SPLK $AVGO $MCUR $VTTI $MBLY $TSL $AAVL $MRNS $MON $LCI https://t.co/iU8lRdgo3C
Market Compass
30 Aug 14 19:33:31
$MON: No Monsanto, No Problem for Syngenta: Real M&A http://t.co/mTFdGuQLD3 http://t.co/6TIOBwAvJw
Carmen Hill
30 Aug 14 19:33:11
$MON (Monsanto) has existing 28700 accumulation distribution: http://t.co/5bdLDDhnZw
Daily Contracts
30 Aug 14 19:24:10
$MON News: Fiscal 2015 Annual Incentive Plan... http://t.co/Km9RABM9ip #incentiveplan #delaware
Investors Hangout
30 Aug 14 09:01:12
jim50: $MON Low Date=Aug-29-2014 Open=116.03 High=116.54 http://t.co/dcWkHGaN7i
Investors Hangout
30 Aug 14 09:01:12
jim50: $MON Low Date=Aug-29-2014 Open=116.03 High=116.54 http://t.co/e5Hx3Hb82l
30 Aug 14 08:51:19
$MON Low Date=Aug-29-2014 Open=116.03 High=116.54 Low=115.45 Close=115.65 Volume=3068700 http://t.co/9N9erwlgp5
Market Compass
30 Aug 14 08:33:31
$MON: U.S. court overturns law limiting biotech crops on Hawaiian island http://t.co/VyFGoeMU1b http://t.co/NHH7jUy5xA
Investors Hangout
30 Aug 14 08:32:36
DennyT: CENX Basic Tech. Analysis $CENX $MON $SH $UNG http://t.co/3ydr18rVbR
Investors Hangout
30 Aug 14 08:32:15
DennyT: CENX Basic Tech. Analysis $CENX $MON $SH $UNG http://t.co/N5VaDtlzS5
Investors Hangout
30 Aug 14 08:31:49
danrocks: $MON Getting Interesting $GDXJ $FOLD $IEF $SDRL http://t.co/bri0k4V5OY
Investors Hangout
30 Aug 14 08:31:47
danrocks: $MON Getting Interesting $GDXJ $FOLD $IEF $SDRL http://t.co/k3BfUzg5B7
30 Aug 14 08:28:14
$GOOGL any other opinions on this? $TD.TO $FXY $MON $HKUP $QIHU http://t.co/DNBP6qIZ51
30 Aug 14 08:22:44
$MON Getting Interesting $GDXJ $FOLD $IEF $SDRL $UVXY http://t.co/0f4zMmDtl0
30 Aug 14 07:00:23
$DDD Candlesticks $DDD Most recent stock chart and technical analysis. $UUP $MOS $DGLY $NEU $MON $CNQR http:// http://t.co/LSQKJClFSm
Diligent Dilettante
29 Aug 14 19:36:55
RT @jacobbunge: Big seed makers unlikely to cut prices despite U.S. farming slump http://t.co/hsb9ysc7Jr $MON $DD
Business News Now
29 Aug 14 15:33:31
$MON: Cramer: 2 stocks to buy on the way down http://t.co/SUwqHPXGBc http://t.co/8sFxV4tOFc
Juan Moreno
29 Aug 14 14:42:02
Bloomberg speculates on potential Syngenta dealmaking http://t.co/nWGrdkp5Ur $MON
Jeffrey Blake
29 Aug 14 13:30:39
$MON 3 Reasons Monsanto Company's Stock Could Rise http://t.co/e8bvuPDx6X
29 Aug 14 11:24:27
BV Basic Materials
29 Aug 14 11:22:03
$MON Monsanto Co /new/ files Form 8-K (Events or Changes Between Quarterly Reports) SEC Filing.. http://t.co/GPgbrlVF0M
Ben Oberkfell
29 Aug 14 10:15:57
@heathborders as if I couldn't tell that it was 90% likely it was $MON and I didn't probably know the hiring manager directly.
Market Updater
29 Aug 14 09:33:36
$MON: Will This Price Target Decrease Hurt Monsanto (MON) Stock Today? http://t.co/MEIioTDy83 http://t.co/IvsFkazsV6
Jesus Cryptos
29 Aug 14 09:15:20
RT @Bidnessetc: Syngenta looking for buyout to boost growth http://t.co/LOBGY7t9Lc $MON $DOW $DD
Bidness Etc
29 Aug 14 09:14:54
Syngenta looking for buyout to boost growth http://t.co/LOBGY7t9Lc $MON $DOW $DD
29 Aug 14 08:52:10
S&P100 #Stocks Performance $COF $EXC $INTC $GS $FB $C $APC $MS $MET $HD $SPG $MO $ORCL $JPM $MON $BAC more@ http://t.co/n4QZIDxy7w
Howard Penney
29 Aug 14 08:29:15
Money begins to flow in Oregon over its GMO ballot measure http://t.co/Cv0xn497b1 $MON $DD $KO $PEP #GMO #RightToKnow #LabelGMOs
edgar hicks
29 Aug 14 08:17:04
RT @jackkaskey: Monsanto profit growth to slow next year as seed price increases limited by cheap corn futures http://t.co/vxoLbbM24X via …
Market Int Center
29 Aug 14 07:00:24
Monsanto $MON Trading Near $114.53 Support Level ( http://t.co/EyMkJhJ9AP )
29 Aug 14 06:20:58
RT @therealmckinsy: @RaymondDebbane @CeresInc $CERE $SYT $MON $BG $DOW M&A bargain prices
James P Worthy
29 Aug 14 06:01:19
$MON 3 Reasons Monsanto Company's Stock Could Rise http://t.co/r0VNC7vVF3
29 Aug 14 05:10:10
@RaymondDebbane @CeresInc $CERE $SYT $MON $BG $DOW M&A bargain prices
29 Aug 14 04:20:58
Bearish MACD Crossovers 2/2 $HAL $HUN $IAG $INTC $KMI $KMP $LYB $MON $ONVO $P $RSG $STLD $TLM $TSO $VNET $X http://t.co/vtvvIhnptr
Business News
29 Aug 14 03:33:33
$MON: Monsanto COO defends against growing anti-GMO sentiment http://t.co/4FJRntw4UM http://t.co/XoAI8IwIL1
Kelvin Wong
29 Aug 14 02:55:39
Monsanto – Bullish candlestick detected near support $MON Refer to link:http://t.co/bWyhGgnGTi http://t.co/gxr2wlZVT8
29 Aug 14 01:06:53
@BastienHuneau Salut. Que penses tu de $MON ? Nouveau point d'entrée aujourd'hui ? Fin de pull-back ?
28 Aug 14 19:17:44
@danravicher $MON Rasputin was a spiritual guru who brought down Russia. I see analog: Vandana Shiva and Prince Charles.
28 Aug 14 19:00:05
10 - Sentiment Shifted Stocks: $MMM $BAC $DBA $EA $FXI $JPM $HIMX $FCX $YELP $MON
Jeremy Wilson, CCA
28 Aug 14 18:58:47
RT @SoyCapitalAg: Bloomberg speculates on potential Syngenta dealmaking $SYT $DOW $DD $MON http://t.co/NOPkWvSXyz
David Klein
28 Aug 14 18:52:18
Bloomberg speculates on potential Syngenta dealmaking $SYT $DOW $DD $MON http://t.co/NOPkWvSXyz
Stock News Updates
28 Aug 14 18:33:34
$MON: USDA leaning toward approval of Monsanto's new GMO beans, cotton http://t.co/1BOFdDG4yz http://t.co/smMiMk6nc8
28 Aug 14 18:00:05
10 - Sentiment Shifted Stocks: $MMM $BAC $FXI $DBA $EA $JPM $HIMX $YELP $FCX $MON
28 Aug 14 17:05:41
10 - Sentiment Shifted Stocks: $BAC $MMM $FXI $DBA $EA $JPM $HIMX $FCX $MON $MRK
28 Aug 14 16:00:56
$VIIC ran up 720% Today in an explosive move! Our new picks are coming soon: http://t.co/EdxLh9u5Nx $BAESY $BWP $MON
28 Aug 14 16:00:05
10 - Sentiment Shifted Stocks: $BAC $MMM $EA $FXI $DBA $JPM $HIMX $FCX $MON $YELP
28 Aug 14 15:53:25
10 Foods You'll Have to Give Up to Avoid Eating #GMOs http://t.co/oL4yWOkWXj via @daily_finance $MON $DD $DOW
By  +Follow October 3, 2013 8:18AM



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