The 10-second takeaway
For the quarter ended Aug. 31 (Q4), Monsanto missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP loss per share grew.
Margins contracted across the board.
Monsanto notched revenue of $2.11 billion. The 13 analysts polled by S&P Capital IQ expected to see net sales of $2.23 billion on the same basis. GAAP reported sales were 6.1% lower than the prior-year quarter's $2.25 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.45. The 18 earnings estimates compiled by S&P Capital IQ predicted -$0.43 per share. GAAP EPS were -$0.43 for Q4 versus -$0.21 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.8%, 150 basis points worse than the prior-year quarter. Operating margin was -12.6%, 910 basis points worse than the prior-year quarter. Net margin was -10.9%, 590 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.63 billion. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $14.54 billion. The average EPS estimate is $4.37.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,851 members out of 2,980 rating the stock outperform, and 129 members rating it underperform. Among 572 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 547 give Monsanto a green thumbs-up, and 25 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 $93.89.
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