Monsanto beats by $0.03, beats on revs; guides FY14 EPS below consensus (113.24)
Reports Q1 (Nov) earnings of $0.67 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus Estimate of $0.64; revenues rose 6.9% year/year to $3.14 bln vs the $3.07 bln consensus.
Co confirmed downside guidance for FY14, sees EPS of $5.00-5.20, excluding non-recurring items, vs. $5.25 Capital IQ Consensus Estimate.
In fiscal year 2014, Monsanto continues to expect strong operational growth from its core business, reflected in mid-to-high teens growth in EBITDA. The co also reaffirmed free cash flow in the range of $600-800 mln for FY14, after ~$917 mln (net of cash acquired) in cash for The Climate Corp acquisition and investment to support the recently announced alliance on microbials with Novozymes.
The co expects net cash provided by operating activities to be $2.9-3.3 bln, and net cash required by investing activities to be ~$2.3-2.5 bln for FY14, including capital expenditures and acquisition-related costs.
Sales for Monsanto's Seeds and Genomics segment in the first quarter were $1.7 bln as the co achieved growth in its soybean business and strong corn portfolio upgrades, including expected trait upgrades across its Latin American portfolio.
Those results are balanced against the expected decrease in corn acres in Latin America, some acre and timing effects related to cotton in Australia, and a more normalized U.S. sales contribution pattern after the step up from last year's accelerated season. Tracking the upcoming U.S. season, the company noted the pace of its U.S. order book and strong pre-pays are tracking well with 2014 targets, reflecting a strong end to the U.S. harvest for the company's products.
Co confirmed downside guidance for FY14, sees EPS of $5.00-5.20, excluding non-recurring items, vs. $5.25 Capital IQ Consensus Estimate.
In fiscal year 2014, Monsanto continues to expect strong operational growth from its core business, reflected in mid-to-high teens growth in EBITDA. The co also reaffirmed free cash flow in the range of $600-800 mln for FY14, after ~$917 mln (net of cash acquired) in cash for The Climate Corp acquisition and investment to support the recently announced alliance on microbials with Novozymes.
The co expects net cash provided by operating activities to be $2.9-3.3 bln, and net cash required by investing activities to be ~$2.3-2.5 bln for FY14, including capital expenditures and acquisition-related costs.
Sales for Monsanto's Seeds and Genomics segment in the first quarter were $1.7 bln as the co achieved growth in its soybean business and strong corn portfolio upgrades, including expected trait upgrades across its Latin American portfolio.
Those results are balanced against the expected decrease in corn acres in Latin America, some acre and timing effects related to cotton in Australia, and a more normalized U.S. sales contribution pattern after the step up from last year's accelerated season. Tracking the upcoming U.S. season, the company noted the pace of its U.S. order book and strong pre-pays are tracking well with 2014 targets, reflecting a strong end to the U.S. harvest for the company's products.