Monsanto Beats on Both Top and Bottom Lines
Monsanto (NYS: MON) reported earnings on June 27. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended May 31 (Q3), Monsanto beat expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased significantly.
Margins increased across the board.
Monsanto reported revenue of $4.22 billion. The 11 analysts polled by S&P Capital IQ expected sales of $4.01 billion on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $3.61 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 $1.63. The 15 earnings estimates compiled by S&P Capital IQ predicted $1.60 per share. GAAP EPS of $1.74 for Q3 were 36% higher than the prior-year quarter's $1.28 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 56.0%, 130 basis points better than the prior-year quarter. Operating margin was 32.0%, 370 basis points better than the prior-year quarter. Net margin was 22.2%, 300 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.21 billion. On the bottom line, the average EPS estimate is -$0.41.
Next year's average estimate for revenue is $13.44 billion. The average EPS estimate is $3.70.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,848 members out of 2,974 rating the stock outperform, and 126 members rating it underperform. Among 564 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 540 give Monsanto a green thumbs-up, and 24 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 $87.68.
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The article Monsanto Beats on Both Top and Bottom Lines originally appeared on Fool.com.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 ofMotley 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 modified stock repair against 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.
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