Monsanto beats by $0.12, misses on revs; lowers FY16 EPS guidance, reaffirms cash flow guidance
- Reports Q1 (Nov) loss of $0.11 per share, excluding non-recurring items, $0.12 better than the Capital IQ Consensus of ($0.23); revenues fell 22.7% year/year to $2.22 bln vs the $2.39 bln Capital IQ Consensus.
- Co lowers FY16 EPS guidance to the lower half of prior guidance range of $5.10-5.60 vs. $5.27 Capital IQ Consensus Estimate.
- With a focus on disciplined cash management, the co continues to project free cash flow in the range of $1.6-1.8 bln for fiscal year 2016. The company expects net cash provided by operating activities to be $2.6 bln to $3 bln, and net cash required by investing activities to be ~$1-1.2 bln
- The company now expects 5-7% gross profit growth (mid-to-high single digit growth) from its core Seeds and Genomics segment in fiscal year 2016
- This growth is expected to be led by new global corn hybrid portfolio introductions, continued significant Intacta RR2 PRO soybean adoption and additional licensing opportunities in the range of $275 million.
- Note: In Q1 of MON's five segment, its Corn seed and traits and Soybeans sees and traits segments made up 92% of total compay gross profit