Monsanto Q1 Loss Narrows, Revenues Miss January 06, 2016

Monsanto Company (MON - Analyst Report) has carved a name for itself in the global agricultural chemicals’ industry. By conducting trade in terms of two major segments, the company tries to enhance the yield and quality of several commercial and non commercial agricultural crops such as cotton, soybean and corn.

However, the company’s trade is highly sensitive to market headwinds such as currency fluctuations and weather volatilities. Moreover, as the extent of industry competition increasing over time, investors have been eagerly awaiting for the company’s latest earnings report.

This is especially true given the recent earnings estimate revisions for MON, as the consensus estimate has moved down in the last few months.

Currently, MON has a Zacks Rank #3 (Hold), but that could definitely change after the release of its upcoming earnings report. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Monsanto reported an adjusted loss of 11 cents in first-quarter fiscal 2016, on an ongoing basis. However the loss was lower than the Zacks Consensus Estimated loss of 27 cents.

Revenue: Monsanto posted revenues of $2,219 million, 12.8% lower than the Zacks Consensus Estimate of $2,546 million.

Key Stats to Note: For fiscal 2016 Monsanto would remain focused towards its Agricultural Productivity strategy. Considering headwinds prevailing in the global and industrial markets, the company expects to accrue ongoing earnings per share at the lower end of the range $5.10-$5.60 for full year fiscal 2016. Free cash flow for fiscal 2016 is estimated to lie within $1.6-$1.8 billion, noting the benefits of disciplined cash management activities. Monsanto foresees that roughly 80% of its expected $3.5 billion in gross profit growth would be determined by innovation benefits from fiscal 2016 to fiscal 2019.

Stock Price: Shares prices of MON did not decreased on a pre-market trading basis.

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