On Wednesday, April 4, Monsanto
- Total sales grew 19% as company management commented, "the strong demand that we've seen for our higher-yielding corn seeds and our higher-margin, triple-trait corn technology has translated into an excellent second quarter and first half for our business."
- Diluted earnings jumped 23% as strong sales and higher net margins easily offset the slight increase in shares outstanding.
- Management expects 2007 earnings of $1.60-$1.65, up from previous guidance of $1.50-$1.57. It's currently calling for free cash flow of $875 million-$950 million, or $1.57-$1.71 per current diluted share.
- Monsanto carries a four-star rating in the Motley Fool CAPS intelligence database, while rival Syngenta
(NYSE:SYT) carries a coveted five-star rating. With CAPS you can offer your opinion on any stock out there, and read up on the healthy debate regarding genetically modified (GM) foods.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|---|
|
Sales |
$2,440 |
$2,616 |
$2,200 |
18.9% |
|
Net Profit |
-- |
$543 |
$440 |
23.4% |
|
EPS |
$0.94 |
$0.98 |
$0.80 |
22.5% |
|
Diluted Shares |
554 |
551 |
0.7% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
55.43% |
56.36% |
(0.93) |
|
Operating Margin |
31.61% |
30.64% |
0.97 |
|
Net Margin |
20.76% |
20.00% |
0.76 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,565 |
$752 |
108.1% |
|
Accounts Rec. |
$2,007 |
$2,010 |
(0.1%) |
|
Inventory |
$1,888 |
$1,856 |
1.7% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$547 |
$379 |
44.3% |
|
Long-Term Debt |
$1,581 |
$1,378 |
14.7% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
YTD 2007 |
YTD 2006 |
Change* |
|
|---|---|---|---|
|
Cash From Ops. |
$520 |
$331 |
57.1% |
|
Capital Expenditures |
$182 |
$157 |
15.9% |
|
Free Cash Flow |
$338 |
$174 |
94.3% |
Free cash flow is a Fool's best friend.
Related Foolishness:
- So Which Stocks Should I Buy Now?
- Is Monsanto Going to Seed?
- 70 Times Better Than the Next Microsoft
- The Genetically Modified Conundrum
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.
