Monsanto
The 10-second takeaway
For the quarter ended Feb. 29 (Q2), Monsanto beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved, and GAAP earnings per share increased significantly.
Margins grew across the board.
Revenue details
Monsanto logged revenue of $4.75 billion. The 13 analysts polled by S&P Capital IQ predicted revenue of $4.53 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $4.13 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Non-GAAP EPS came in at $2.28. The 18 earnings estimates compiled by S&P Capital IQ averaged $2.11 per share on the same basis. GAAP EPS of $2.24 for Q2 were 19% higher than the prior-year quarter's $1.88 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 57%, 100 basis points better than the prior-year quarter. Operating margin was 38.1%, 200 basis points better than the prior-year quarter. Net margin was 25.5%, 90 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $3.74 billion. On the bottom line, the average EPS estimate is $1.29.
Next year's average estimate for revenue is $13.13 billion. The average EPS estimate is $3.54.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,866 members rating the stock outperform and 127 members rating it underperform. Among 612 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 589 give Monsanto a green thumbs-up, and 23 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Monsanto is outperform, with an average price target of $85.78.
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