Earnings Roundup: Monsanto, Mosaic and 3 Stocks Investors are Analyzing After Earnings
Although we are at the tail end of earnings season, ag and fertilizer giants Mosaic and Monsanto still had plenty of news to offer investors. We also got insight into the shaky for-profit education sector, the wine industry, and a company which purifies water.
Apollo Group Inc. (NASDAQ:APOL) reported its results for the first quarter. Net income for Apollo Group Inc. fell to $149.3 million ($1.14 per share) vs. $236 million ($1.61 per share) a year earlier. This is a decline of 37% from the year earlier quarter. Revenue fell 11.1% to $1.18 billion from the year earlier quarter. APOL reported adjusted net income of $1.28 per share. By that measure, the company beat the mean estimate of $1.18 per share. Analysts were expecting revenue of $1.16 billion.
“Our strategic initiatives to further enhance the student experience and provide world-class student protections remain our focus,” said Apollo Group Co-Chief Executive Officer and Apollo Global Chairman Greg Cappelli. “We are also pleased to report positive new enrollment growth during the first quarter and improving trends in admissions advisor effectiveness, while reaching students who we believe can be successful in our degree programs.”
Competitors to Watch: Career Education Corp. (NASDAQ:CECO), DeVry Inc. (NYSE:DV), Corinthian Colleges, Inc. (NASDAQ:COCO), Strayer Education, Inc. (NASDAQ:STRA), Grand Canyon Education Inc (NASDAQ:LOPE), American Public Education, Inc. (NASDAQ:APEI), ITT Educational Services, Inc. (NYSE:ESI), National American Univ. Hldgs., Inc. (NASDAQ:NAUH), Bridgepoint Education, Inc. (NYSE:BPI), and Education Management Corp (NASDAQ:EDMC).
The Mosaic Company (NYSE:MOS) reported its results for the second quarter. Net income for the agricultural chemicals company fell to $623.6 million ($1.40 per share) vs. $1.03 billion ($2.29 per share) a year earlier. This is a decline of 39.2% from the year earlier quarter. Revenue rose 12.7% to $3.01 billion from the year earlier quarter. MOS beat the mean analyst estimate of $1.30 per share. It beat the average revenue estimate of $2.54 billion.
“Our excellent results demonstrate the strength of underlying agricultural fundamentals combined with effective execution by our businesses,” said Jim Prokopanko, President and Chief Executive Officer of Mosaic. “While we expect third quarter results to decline due to near-term macroeconomic uncertainty and cautious distributor purchasing behavior, we remain confident of the strong long-term demand prospects for our products. In this environment, we continue to focus on generating value by executing our strategy.”
Monsanto Company (NYSE:MON) reported net income above Wall Street’s expectations for the first quarter. Net income for the agricultural chemicals company rose to $126 million (23 cents per share) vs. $9 million (2 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year earlier quarter. Revenue rose 33.3% to $2.44 billion from the year earlier quarter. MON beat the mean analyst estimate of 19 cents per share. It beat the average revenue estimate of $2.04 billion.
“We’ve seen a very strong start to the year, with real growth in Latin America and early orders in the United States that underscore our sustained momentum carrying into 2012,” said Hugh Grant, chairman, president and chief executive officer for Monsanto. “We are pleased growers have recognized the value of our products and the benefits they provide on farm. Our pipeline progress continues to be a competitive differentiator, and that’s ever more important as we put an even greater focus on delivering yield to growers.”
Competitors to Watch: Syngenta AG (NYSE:SYT), The Scotts Miracle-Gro Co. (NYSE:SMG), The Dow Chemical Company (NYSE:DOW), FMC Corporation (NYSE:FMC), The Mosaic Company (NYSE:MOS), American Vanguard Corp. (NYSE:AVD), CF Industries Hldgs., Inc. (NYSE:CF), and Origin Agritech Ltd. (NASDAQ:SEED).
Constellation Brands Inc. (NYSE:STZ) saw profit fall amid falling revenue. Net income for Constellation Brands Inc. fell to $104.8 million (52 cents per share) vs. $139.3 million (65 cents per share) a year earlier. This is a decline of 24.8% from the year earlier quarter. Revenue fell 27.5% to $700.7 million from the year earlier quarter. STZ fell short of the mean analyst estimate of 52 cents per share. It fell short of the average revenue estimate of $720.4 million.
“Our third quarter results were generally consistent with our expectations for the business and reflect continuing progress particularly in the areas of free cash flow generation and improving depletion trends for our U.S. wine and spirits business. I am especially pleased with the ongoing momentum from our new product development and brand building initiatives,” said Rob Sands, president and chief executive officer, Constellation Brands.
Competitors to Watch: Castle Brands Inc. (AMEX:ROX), Diageo plc (NYSE:DEO), Willamette Valley Vineyards, Inc. (NASDAQ:WVVI), Molson Coors Brewing Co. (NYSE:TAP), Craft Brewers Alliance, Inc. (NASDAQ:HOOK), Compania Cervecerias Unidas S.A. (NYSE:CCU), and Fortune Brands, Inc. (NYSE:FO).
Helen of Troy Limited (NASDAQ:HELE) reported its results for the second quarter. Net income for Helen of Troy Limited rose to $32.9 million ($1.04 per share) vs. $27.1 million (86 cents per share) in the same quarter a year earlier. This marks a rise of 21% from the year earlier quarter. Revenue rose 65% to $338.8 million from the year earlier quarter. HELE beat the mean analyst estimate of $1.02 per share. It beat the average revenue estimate of $323.9 million.
Gerald J. Rubin, Chairman, Chief Executive Officer and President, commenting on the Company’s results, stated “We are pleased with our record sales and record earnings for the third quarter and year to date given a challenging retail environment. Operating income increased by 32.6 and 25.5 percent, respectively, for the three- and nine-months ended November 30 , 2011. The integration of and expansion of our business in the Healthcare / Home Environment segment continues to progress according to plan. On December 30, 2011 , we completed our acquisition of the PUR home water filtration business (“PUR”) from the Proctor & Gamble Company, at a purchase price of $160,000,000 . PUR’s product lines include faucet mount water filtration systems and filters, pitcher filtration systems and filters and refrigerator filters. PUR will be operated as part of our Healthcare / Home Environment segment. PUR shares many of the segment’s existing customer base, target audience, and product focus areas. The acquisition of PUR adds an important brand to our portfolio of well-recognized and widely-trusted consumer brands. We believe the acquisition will be immediately accretive to earnings.”
Competitors to Watch: Deer Consumer Products, Inc. (NASDAQ:DEER), Jarden Corporation (NYSE:JAH), Global-Tech Advanced Innovations Inc. (NASDAQ:GAI), The Procter & Gamble Co. (NYSE:PG), Church & Dwight Co., Inc. (NYSE:CHD), Colgate-Palmolive Company (NYSE:CL), The Clorox Company (NYSE:CLX), Kimberly-Clark Corporation (NYSE:KMB), Johnson & Johnson (NYSE:JNJ), Teva Pharmaceutical Industries Ltd (NASDAQ:TEVA), CCA Industries, Inc. (AMEX:CAW), and Zep, Inc. (NYSE:ZEP).