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.
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.
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.
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.
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.
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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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.