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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.


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Results for MON
Tim Brennan
27 Aug 14 05:47:39
Expected Range Compression Scan for 8/27/2014 (Bullish) - $AGN $VRX $COV $MON $APA http://t.co/M0NsWx7Bfj
Market Int Center
27 Aug 14 05:13:25
Monsanto $MON Trading Near $116.43 Support Level ( http://t.co/lTclsrBZAb )
InterCooler
27 Aug 14 02:35:21
Jefferies Group Trims Monsanto Company Target Price to $130.00 $MON http://t.co/SFxE6YAzeX
Audry Rayford
26 Aug 14 18:18:02
$MON [video] Seed companies 'insulated' http://t.co/YYyOzzr850
Stocks in News
26 Aug 14 10:33:36
$MON: U.S. court overturns law limiting biotech crops on Hawaiian island http://t.co/xrM3xcZK0u http://t.co/l6nCfUPzY2
FlashRatingsHOT
26 Aug 14 10:04:57
$MON has 3 analyst ratings in the last 2 days and 100% are positive. Median target: $141 (20% upside). View here: https://t.co/lZPOEbwsoT
FlashRatings
26 Aug 14 09:52:56
Most heavily analyst rated stocks in the last 72 hrs: $MBLY $FL $ITMN $THI $MCUR $HQY $AAVL $MON $SPKE $MRNS https://t.co/BpdKpNYGKK
FlashRatings
26 Aug 14 06:24:45
Most heavily analyst rated stocks in the last 72 hrs: $MBLY $FL $ITMN $MCUR $HQY $THI $AAVL $MRNS $SPKE $MON https://t.co/BpdKpNYGKK
Frank Vinluan
26 Aug 14 06:05:17
Novozymes, Monstanto plan 2 dbl ag #microbial field tests next yr. What I reported earlier on efforts: http://t.co/JClqb9nFJz $NZYM $MON
Frank Vinluan
26 Aug 14 05:58:50
Novozymes & Monsanto tested ag #microbials on 170,000 field trial plots in 70 US locations in 2014, PR: http://t.co/ZtXYnxS2Pd $NZYM $MON
Business News
26 Aug 14 05:33:29
$MON: Monsanto Board Approves Increase in Quarterly Dividend to 49 Cents Per Share http://t.co/WTKsx1qm2W http://t.co/fcEAGy1lTk
Seeking Alpha
26 Aug 14 05:32:06
Valmont: Putting My Money Where My Mouth Is http://t.co/do28O2PoFc $DE $LNN $MON $VMI
InterCooler
26 Aug 14 04:20:38
Monsanto Company Receives “Outperform” Rating from Morgan Stanley $MON http://t.co/PTLMTGrCj3
Deppilf flippeD
25 Aug 14 19:13:17
$mon should go after $syn still $bkw doing it right.
Rob
25 Aug 14 18:02:15
@JustinPulitzer any thoughts on $MON? Thinking of going short off today's little pop.
ARK Genome
25 Aug 14 17:24:11
Could plants one day produce #DHA, #EPA "fish oils"? $MON, #RothamstedResearch, others are working on field trials http://t.co/89QOohwe0A
Financial Updates
25 Aug 14 16:33:29
$MON: Monsanto Company Sets Webcasts for Whistle Stop Investor Event http://t.co/heoj6vKktM http://t.co/sQd3cve0KX
ETF Trends
25 Aug 14 16:10:26
Street One Financial - #ETF Chart of the Day: Go With $GUNR http://t.co/4BWNBS7JX2 #ETFs $TDTT $GDX $XOM $MON
Tom Lydon
25 Aug 14 16:05:19
Street One Financial - #ETF Chart of the Day: Go With $GUNR http://t.co/k3B7GtsS29 #ETFs $TDTT $GDX $XOM $MON
TipRanks
25 Aug 14 14:04:34
0-star analyst Chris Parkinson from Credit Suisse reiterated a BUY rating on $MON. Chris has a 33.3% success rate http://t.co/EULjpTNKw2
Options Idea Central
25 Aug 14 13:58:18
Growing a Trade in $MON?!? http://t.co/fFUOH89A4m
James P Worthy
25 Aug 14 13:01:47
$MON 3 Reasons Monsanto Company's Stock Could Rise http://t.co/9n4O8e20Ve
Stock Headlines
25 Aug 14 11:33:34
$MON: 3 Reasons Monsanto Company's Stock Could Fall http://t.co/mdycp1CVmY http://t.co/GLJOwmYDzN
Irma Doucet
25 Aug 14 11:30:18
$MON 3 Reasons Monsanto Company's Stock Could Fall http://t.co/YqY8xRn7Ow
Lucretia
25 Aug 14 11:30:18
$MON 3 Reasons Monsanto Company's Stock Could Rise http://t.co/KDCs0FNN0t
FlashRatings
25 Aug 14 10:38:52
Most heavily analyst rated stocks in the last 72 hrs: $FL $ITMN $CRM $MON $X $ANN $STLD $RGDO $DYN $TRIP $ARO https://t.co/TrweUrQtiS
Soltan Capital, LLC
25 Aug 14 10:21:58
#StockAction $KSS $MON $RH $UNG $SPY $IWM $SPX $RUT $DIA $VIX #daytrading #swingtrading #LasVegas #Vegas #Wallstreet
Trading Masters
25 Aug 14 08:35:17
Muster se positionne à l'achat sur MONTUPET SA pour 1064.2EUR à 53.21EUR http://t.co/zeWRbtAI3G #Muster $MON
Interactiv Trading
25 Aug 14 08:25:17
RT @BastienHuneau: $MON je sors 50% de la position initiée lundi dernier avec 12% de plus value. Je garde les 50% restant pour viser 58€ ht…
Bastien Huneau
25 Aug 14 08:21:45
$MON je sors 50% de la position initiée lundi dernier avec 12% de plus value. Je garde les 50% restant pour viser 58€ http://t.co/Wcoern21pz
US Banking News
25 Aug 14 07:39:10
Monsanto Company’s “Outperform” Rating Reaffirmed at Morgan Stanley $MON http://t.co/e1ShSYGTaj
Stock Headlines
25 Aug 14 07:33:29
$MON: Monsanto Company Sets Webcasts for Whistle Stop Investor Event http://t.co/HPgWyC9Uke http://t.co/V8XLBdGMAY
US Consumer News
25 Aug 14 07:17:04
Monsanto Company's outperform rating reiterated at Morgan Stanley. $141.00 PT. http://t.co/WjnIImXNJD $MON #MON
Ticker Report
25 Aug 14 07:14:16
Monsanto Company’s Outperform Rating Reaffirmed at Morgan Stanley $MON http://t.co/kEmOe6wk3D
Media Sentiment
25 Aug 14 07:11:56
$MON received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 142
Analyst Ratings
25 Aug 14 07:11:00
Monsanto Company's outperform rating reiterated at Morgan Stanley. $141.00 PT. http://t.co/WE3DYJbyfF $MON #MON
TheStreet Alerts
25 Aug 14 06:38:22
Will This Price Target Decrease Hurt Monsanto $MON Stock Today? http://t.co/Me6wPaNccM
TLT
25 Aug 14 06:09:27
$MON one to watch for further pullback. Think this one could head back to test 100 by year end.
Market News
25 Aug 14 05:33:29
$MON: 3 Reasons Monsanto Company's Stock Could Fall http://t.co/M4gmAUxHK1 http://t.co/LFhIlz2Oib
FonsieTrader
25 Aug 14 05:09:18
Parabolic Sar Sell Signals 1/2 $XOMA $AGCO $ALNY $AMT $ANAC $COT $CTCT $ECYT $EEFT $EROC $FBR $FIG $LINE $MON $OMEX http://t.co/cqohtAOndz
Ticker Report
25 Aug 14 03:28:52
Monsanto Company Given New $130.00 Price Target at Jefferies Group $MON http://t.co/ZyNZda29YB
US Banking News
25 Aug 14 02:22:54
Jefferies Group Trims Monsanto Company Target Price to $130.00 $MON http://t.co/Btbmr6t9ck
US Consumer News
25 Aug 14 01:18:46
Monsanto Company's PT cut by Jefferies Group to $130.00. http://t.co/kLNuWL9LXM $MON #MON
Analyst Ratings
25 Aug 14 01:18:39
Monsanto Company's PT cut by Jefferies Group to $130.00. http://t.co/BBUiBuGjXj $MON #MON
Stock Market News
24 Aug 14 23:33:28
$MON: Monsanto Profit Growth to Slow Next Year on Corn Prices http://t.co/F3JNqtrWqs http://t.co/UdjpxQ2GGw
Forex Insight
24 Aug 14 23:31:16
RT @BastienHuneau: J'ai hâte de voir l'ouverture des actions, notamment mes pépites $MON $POM $ACKB $ALGAU retrouver tout sur @IVTrading !
Interactiv Trading
24 Aug 14 23:27:21
RT @BastienHuneau: J'ai hâte de voir l'ouverture des actions, notamment mes pépites $MON $POM $ACKB $ALGAU retrouver tout sur @IVTrading !
Bastien Huneau
24 Aug 14 23:27:12
J'ai hâte de voir l'ouverture des actions, notamment mes pépites $MON $POM $ACKB $ALGAU retrouver tout sur @IVTrading !
4-traders.com
24 Aug 14 22:50:02
Monsanto : GM crops could put food security goal at stake http://t.co/eoqb8nT5eE $MON
Marijuanacharts
24 Aug 14 22:37:43
$TRTC sleekscape: HUGE PR $MON OR TUES: sleekscape http://t.co/bI2lblB5Mk
				
				
By  +Follow October 3, 2013 8:18AM
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