The 10-second takeaway
For the quarter ended May 31 (Q3), Monsanto missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. Non-GAAP earnings per share expanded slightly. GAAP earnings per share contracted.
Margins contracted across the board.
Monsanto booked revenue of $4.25 billion. The 15 analysts polled by S&P Capital IQ wanted to see revenue of $4.41 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.66. The 21 earnings estimates compiled by S&P Capital IQ predicted $1.61 per share. Non-GAAP EPS of $1.66 for Q3 were 1.8% higher than the prior-year quarter's $1.63 per share. GAAP EPS of $1.68 for Q3 were 3.4% lower than the prior-year quarter's $1.74 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 53.2%, 280 basis points worse than the prior-year quarter. Operating margin was 29.1%, 290 basis points worse than the prior-year quarter. Net margin was 21.4%, 80 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.23 billion. On the bottom line, the average EPS estimate is -$0.39.
Next year's average estimate for revenue is $14.91 billion. The average EPS estimate is $4.61.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,824 members out of 2,971 rating the stock outperform, and 147 members rating it underperform. Among 537 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 508 give Monsanto a green thumbs-up, and 29 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 $114.08.
The rich are different than you and me: They might not notice the moneymaking stories right under our noses. In our new report, "Middle-Class Millionaire-Makers: 3 Stocks Wall Street's Too Rich to Notice," we give you three Peter Lynch-inspired buy-what-you-know stocks for the 99%. Click here for instant access to this free report.
- Add Monsanto to My Watchlist.
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. The Motley Fool recommends the following options: Long Jan 2015 $70 Calls on Monsanto and Long Jan 2015 $70 Puts on 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.