Monsanto beats by $0.08, reports revs in-line; guides FY14 EPS below consensus
Reports Q2 (Feb) earnings of $3.15 per share, $0.08 better than the Capital IQ Consensus Estimate of $3.07; revenues rose 6.6% year/year to $5.83 bln vs the $5.83 bln consensus.
Monsanto's global corn and soy businesses have led the Seeds and Genomics segment performance. 4. That record quarter drove overall margin expansion in the soybean segment, with margins in the quarter improving by more than seven points.
"Nearly 80 percent of our growth in the quarter came from our core seeds and traits business, providing an important proof point that our business is on track and positioned well to deliver the growth we anticipated for 2014 even against a backdrop of greater variability in the agricultural sector this year," said Hugh Grant, chairman and chief executive officer for Monsanto."
- Co confirms downside guidancefor FY14, sees EPS of $5.00-5.20 vs. $5.25 Capital IQ Consensus Estimate.
- Monsanto expects a strong second half of the fiscal year, punctuated by a strong conclusion in Q4 as the co expects a significantly smaller loss than in recent years driven by a number of core factors.
- The co also reaffirmed free cash flow in the range of $600 mln to $800 mln for fiscal year 2014
- Sales in the Seeds and Genomics segment for Q2 were $4.6 bln, an increase of $302 mln over the same period last year.
Monsanto's global corn and soy businesses have led the Seeds and Genomics segment performance. 4. That record quarter drove overall margin expansion in the soybean segment, with margins in the quarter improving by more than seven points.
"Nearly 80 percent of our growth in the quarter came from our core seeds and traits business, providing an important proof point that our business is on track and positioned well to deliver the growth we anticipated for 2014 even against a backdrop of greater variability in the agricultural sector this year," said Hugh Grant, chairman and chief executive officer for Monsanto."