Monsanto Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Monsanto (NYS: MON) reported earnings on April 3. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Feb. 28 (Q2), Monsanto beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share increased significantly.


Gross margins dropped, operating margins increased, net margins increased.

Revenue details
 Monsanto reported revenue of $5.47 billion. The 14 analysts polled by S&P Capital IQ expected sales of $5.27 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $4.75 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $2.73. The 18 earnings estimates compiled by S&P Capital IQ predicted $2.56 per share. Non-GAAP EPS of $2.73 for Q2 were 20% higher than the prior-year quarter's $2.28 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.) GAAP EPS of $2.74 for Q2 were 22% higher than the prior-year quarter's $2.24 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 56.1%, 90 basis points worse than the prior-year quarter. Operating margin was 38.6%, 50 basis points better than the prior-year quarter. Net margin was 27.1%, 160 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $4.47 billion. On the bottom line, the average EPS estimate is $1.74.

Next year's average estimate for revenue is $14.93 billion. The average EPS estimate is $4.55.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,830 members out of 2,969 rating the stock outperform, and 139 members rating it underperform. Among 579 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 552 give Monsanto a green thumbs-up, and 27 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 $108.98.

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.

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. 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement