Monsanto Earnings: Here’s Why Investors are Selling Shares Now

Monsanto Co. (NYSE:MON) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.35%.

Monsanto Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.47 in the quarter versus EPS of $-0.44 in the year-earlier quarter.

Revenue: Rose 4.96% to $2.2 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Monsanto Co. reported adjusted EPS loss of $0.47 per share. By that measure, the company missed the mean analyst estimate of $-0.43. It missed the average revenue estimate of $2.24 billion.

Quoting Management: “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,” said Hugh Grant, chairman and chief executive officer for Monsanto. “The performance of our core business gives us the ability to invest efficiently in breakthrough agricultural innovation that, by making farming more precise, will enable continued improvement in agriculture sustainability in the face of mounting environmental challenges. As the innovation leader, we’ve staked out the early position to unlock the next wave of on-farm yield opportunity for farmers around the world.”

Key Stats (on next page)…

Revenue decreased 48.16% from $4.25 billion in the previous quarter. EPS decreased to $-0.47 in the quarter versus EPS of $1.66 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.67 and has not changed. For the current year, the average estimate is a profit of $4.58, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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