logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Monsanto Q4 Losses Worse Than Expected, Announces $930 Million Acquisition

By  +Follow October 3, 2013 8:18AM
Share:
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.


Signup for our daily newsletter and get our best articles emailed right to you!

Results for MON
Stock Signaling
29 Jan 15 02:01:04
Conference Calls: $PTLA $BITA $AYI $HELE $BBBY $MWV $GPN $STZ $APOL $RT $RPM $GBX $SVU $MON $BLOX http://t.co/S9oPUZ8PN3 #dow #swingtrading
Stockaholics
28 Jan 15 23:15:27
Our Penny Stock Picks On $IJJP $TUNG & $QLTS Gained 117% In 3 Days! New Pick Coming: http://t.co/c7bXDM1sfp $BAESY $BWP $MON
FinSentS SP500
28 Jan 15 23:07:58
$MON:US Monsanto a t rcompens pour sa gestion durable de l'eau #MONSANTO CO http://t.co/9aeDg9ZuKZ #SP500
Stockaholics
28 Jan 15 19:10:24
Our Penny Stock Picks On $IJJP $TUNG & $QLTS Gained 117% In 3 Days! New Pick Coming: http://t.co/c7bXDM1sfp $BAESY $BWP $MON
CEK
28 Jan 15 19:09:20
Keep your eyes on $MON on any market dip. Transformative move to branded / proprietary mix and stealth tech play. @wandy922. This thing
StockNewsWires
28 Jan 15 16:21:01
$PNRA $MON: Russians, Europeans, Cows Are Squeezing U.S. Wheat Price: http://t.co/uEnR3rbNai
Sharon Allen
28 Jan 15 15:39:50
RT @TraderThomas14: People want fresh clean organic food. $MON is the devil, no seriously. #GMO is pure poison and the sheeple are waking u…
Trader Thomas
28 Jan 15 15:19:11
People want fresh clean organic food. $MON is the devil, no seriously. #GMO is pure poison and the sheeple are waking up to the fact.
FinSentS SP500
28 Jan 15 15:10:40
$MON:US Investment Analysts' Weekly Ratings Updates for Monsanto Company (MON) #MONSANTO CO http://t.co/MiBZzKgVLT #SP500
Traderific
28 Jan 15 13:34:38
SHORT $MON 117.35, SELL $PEP 95.72, SELL $PFE 31.52, SELL $PPG 221.84. More stock tips & details at: http://t.co/afhRcGK2nU
Stockaholics
28 Jan 15 11:01:10
Our Penny Stock Alert On $QLTS Has Gained 34.62% In The Past 2 Days! Special Update: http://t.co/MNFk4FhSe1 $BAESY $BWP $MON
Trefis.com
28 Jan 15 09:49:46
Lower Seed Prices, Currency Headwinds, Weigh On DuPont's Earnings Growth And Outlook http://t.co/9DHfU3Ns5k by Trefis Team $DD $DOW $MON
Penny Stock Secret
28 Jan 15 08:35:22
This Man Turned $100 Into Over $10,000 In Just 30 Days! Proof Here http://t.co/SVqoMlijqL .. $BAESY $BWP $MON
Lauren Holmes
28 Jan 15 08:16:23
Starbreakouts newsletter sent. Read why hedge funds are buying $INTC $MON $TMO Check out here http://t.co/huaLsHHvaD
Kevin B. Bantz
28 Jan 15 08:04:38
http://t.co/SK6gaD2Jrc $MON SHORT http://t.co/PCDoHzWIBD
FinSentS SP500
28 Jan 15 07:09:12
$MON:US Investment Analysts' Weekly Ratings Updates for Monsanto Company (MON) #MONSANTO CO http://t.co/s3Bw5rqPRU #SP500
Stock Rocket
28 Jan 15 07:08:40
Our Penny Stock Alert On $QLTS Has Gained 34.62% In The Past 2 Days! Special Update: http://t.co/SK1yaqFkM1 $BAESY $BWP $MON
Irma Doucet
28 Jan 15 07:01:38
$MON Monsanto Gets US Approval for New GMO Seeds http://t.co/gPQpdkJl0z
Gr8wklyoptions
28 Jan 15 05:53:13
$MON $MOS $MS $MSFT $NFLX $PANW $PCLN $QCOM $QQQ $SBUX $SLB $SNDK $SPY $TLT $TSLA $TWTR $USO $V $VXX $XOM $YHOO
Penny Stock Secret
28 Jan 15 04:19:06
This Guy Turned $100 into over $10,000 In Just 30 Days! http://t.co/vezCDY95do .. $MOH $MON $MOS
ProVesting
28 Jan 15 04:01:04
$MON: Investors Buy Monsanto Company on Weakness: http://t.co/GNixiEfsw3
Dakota Financial
28 Jan 15 03:33:50
Investors Buy Monsanto Company on Weakness $MON http://t.co/tUlESE5d5i
Stock Signaling
28 Jan 15 02:01:05
Conference Calls: $PTLA $BITA $AYI $HELE $BBBY $MWV $GPN $STZ $APOL $RT $RPM $GBX $SVU $MON $BLOX http://t.co/S9oPUZ8PN3 #stock #nyse #spy
Stock Rocket
28 Jan 15 00:15:23
Our Penny Stock Alert On $QLTS Has Gained 34.62% In The Past 2 Days! Special Update: http://t.co/SK1yaqFkM1 $BAESY $BWP $MON
TickerChirp
27 Jan 15 23:18:03
Top in Twitter About $MON (Monsanto Co symbol MON) on 01/28/2015 http://t.co/paBv1DrNB1
StockNewsWires
27 Jan 15 23:16:03
$MON: Enter your email address below to get the latest news and analysts ...: http://t.co/73kXYawhf1
US Banking News
27 Jan 15 23:13:03
Investment Analysts’ Weekly Ratings Updates for Monsanto Company $MON http://t.co/6T6PDJcqgc
Ticker Report
27 Jan 15 23:11:40
Investment Analysts’ Weekly Ratings Updates for Monsanto Company $MON http://t.co/Hta8UoKQEv
TV_Trading Ideas
27 Jan 15 23:02:43
Mon — Head and Shoulders $MON http://t.co/6FE5TNTMi6
InterCooler
27 Jan 15 20:21:57
Investors Buy Shares of Monsanto Company on Weakness $MON http://t.co/PbheEBgcgN
Stockaholics
27 Jan 15 20:08:42
Our Penny Stock Alert On $QLTS Has Gained 34.62% In The Past 2 Days! Special Update: http://t.co/MNFk4FhSe1 $BAESY $BWP $MON
ProTradersNews
27 Jan 15 19:26:05
$MON: Investors Buy Shares of Monsanto Company on Weakness (MON): http://t.co/JFLJBtJXSw
iHangout
27 Jan 15 18:30:18
$CGRA Dividend Click Here: http://t.co/RdJsTtyFkV Also See: $DAUGF $MON $FABU $SAFRF ~
Brian Lund
27 Jan 15 18:18:11
"@harmongreg: Breaking Diamonds - Dragonfly Capital http://t.co/YU3UVUxYX6 $MON"
Greg Harmon, CMT
27 Jan 15 18:06:37
Breaking Diamonds - Dragonfly Capital http://t.co/l2wO4tKB6y $mon
clayton
27 Jan 15 17:27:44
Stocks Trending Now: http://t.co/2RP342qvZt $ZSHGY $OEXFF $NWCN $NXQ $HDSN $EVRN $ABKB $BJBJY $ADLS $LVMUY $FXNC $MON ~
Stockaholics
27 Jan 15 15:32:04
Our Penny Stock Picks Gained 968% In 5 Weeks! Get Our Next Pick Early: http://t.co/yQwzgQ7fmA $BAESY $BWP $MON
Wally Beddoe
27 Jan 15 13:39:40
RT @YahooFinance: Breaking diamonds in Monsanto stock http://t.co/00uHOVNCuG via @harmongreg $MON http://t.co/HpThr4oVzi
Deppilf flippeD
27 Jan 15 13:38:49
W/ all this inside selling and $115 calls sold I disagree RT @harmongreg: Breaking Diamonds - Dragonfly Capital http://t.co/mTrXfsZlFp $MON
Insider Alerts
27 Jan 15 13:05:06
$MON: New Insider Transaction on MON by Vice President and Treasurer Hartley Tom D: http://t.co/C06YSANAaD http://t.co/meA1eLTLrE
Woll Street
27 Jan 15 12:29:43
RT @harmongreg: New Post: Breaking Diamonds - Dragonfly Capital http://t.co/jqVmMwycDl $MON
Greg Harmon, CMT
27 Jan 15 12:21:50
New Post: Breaking Diamonds - Dragonfly Capital http://t.co/jqVmMwycDl $MON
Novellus Financial
27 Jan 15 12:01:56
RT @YahooFinance: Breaking diamonds in Monsanto stock http://t.co/00uHOVNCuG via @harmongreg $MON http://t.co/HpThr4oVzi
Omar David Cabello
27 Jan 15 11:59:55
RT @YahooFinance: Breaking diamonds in Monsanto stock http://t.co/00uHOVNCuG via @harmongreg $MON http://t.co/HpThr4oVzi
Krishna Ramaraju
27 Jan 15 11:59:42
RT @YahooFinance: Breaking diamonds in Monsanto stock http://t.co/00uHOVNCuG via @harmongreg $MON http://t.co/HpThr4oVzi
Azeez Mustapha
27 Jan 15 11:57:08
RT @YahooFinance: Breaking diamonds in Monsanto stock http://t.co/00uHOVNCuG via @harmongreg $MON http://t.co/HpThr4oVzi
Daniel Israel
27 Jan 15 11:56:17
RT @YahooFinance: Breaking diamonds in Monsanto stock http://t.co/00uHOVNCuG via @harmongreg $MON http://t.co/HpThr4oVzi
Yahoo Finance
27 Jan 15 11:55:39
Breaking diamonds in Monsanto stock http://t.co/00uHOVNCuG via @harmongreg $MON http://t.co/HpThr4oVzi
Stock Rocket
27 Jan 15 11:52:53
Our Penny Stock Picks Gained 968% In 5 Weeks! Get Our Next Pick Early: http://t.co/wMEn6i1tkM $BAESY $BWP $MON
Jim Brown
27 Jan 15 11:50:21
@The_Real_Fly when the fertile plains have been scorched and the locusts abound, $MON shall own our fate.
				
				
By  +Follow October 3, 2013 8:18AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.