--> +0.72% pre mkt 6k shares traded
Monsanto beats by $0.10, beats on revs; guides FY17 EPS below consensus
- Reports Q4 (Aug) earnings of $0.07 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus of ($0.03); revenues rose 8.8% year/year to $2.56 bln vs the $2.38 bln Capital IQ Consensus. Despite strong penetration of Intacta RR2 PRO technology and record U.S. corn seed volumes, full-year net sales were down year-over-year, due primarily to currency headwinds and price declines in agricultural productivity. Seeds and Genomics segment net sales were $1.6 billion for the quarter.
- Co issues downside guidance for FY17, sees EPS of $4.50-4.90, excluding non-recurring items, vs. $4.92 Capital IQ Consensus Estimate. The company expects net cash provided by operating activities to be $2.4 billion to $2.8 billion, and net cash required by investing activities to be ~$1.0 billion to $1.2 billion, assuming the successful sale of the Precision Planting equipment business and a meaningful first year investment in its dicamba production facility. All together, this translates into expected free cash flow of $1.4 to $1.6 billion.
- The company noted that its continued focus on return on innovation and cost discipline in 2016 sets up a strong base for growth in 2017, where it expects strong cash flows and growth in EPS.
- Anticipated gross profit growth in the Seeds and Genomics segment is expected to be driven by increased penetration of soybean technologies and improved soybean costs of goods sold. The company expects Seeds and Genomics segment gross profit to increase in the mid-single digits as a percent year-over-year, with soybean gross profit alone expected to grow by more than 20%.
- Co is being acquired by Bayer (BAYRY) for $128/share in cash... deal expected to close by end of 2017.