The 10-second takeaway
For the quarter ended Nov. 30 (Q1), Monsanto beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and earnings per share grew significantly.
Margins improved across the board.
Monsanto reported revenue of $2.4 billion. The analyst polled by S&P Capital IQ foresaw sales of $2 billion. Sales were 33% higher than the prior-year quarter's $1.8 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.23. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.17 per share. GAAP EPS of $0.23 for Q1 were much higher than the prior-year quarter's $0.01 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 44.9%, 20 basis points better than the prior-year quarter. Operating margin was 10.0%, 640 basis points better than the prior-year quarter. Net margin was 5.2%, 490 basis points better than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $4.5 billion. On the bottom line, the average EPS estimate is $2.10.
Next year's average estimate for revenue is $12.9 billion. The average EPS estimate is $3.50.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Monsanto is outperform, with an average price target of $81.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended creating a synthetic long position in Monsanto. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.