Monsanto (MON) Misses Q3 Earnings and Revenues

Monsanto Company MON has carved a name for itself in the global agricultural chemicals’ industry. By conducting trade, the company tries to enhance the yield and quality of several commercial and non commercial agricultural crops such as cotton, soybean and corn.

However, the company’s trade is highly sensitive to market headwinds such as currency fluctuations and weather volatilities. Moreover, as the extent of industry competition increasing over time, investors have been eagerly awaiting for the company’s latest earnings report.

Currently, MON has a Zacks Rank #3 (Hold), but that could definitely change after the release of its upcoming earnings report. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Monsanto reported adjusted earnings of $2.17 per share in third-quarter fiscal 2016, on an ongoing basis. The earnings was lower than the Zacks Consensus Estimate $2.41 per share.

Revenue: Monsanto posted revenues of $4,189 million, 5.3% lower than the Zacks Consensus Estimate of $4,425 million.

Key Stats to Note: Monsanto aims to improve its business on the back of increased innovation and tactical restructuring initiatives. However, considering headwinds prevailing in the global and industrial markets, the company expects to accrue ongoing earnings per share at the lower end of the range $4.40-$5.10 for whole year fiscal 2016.

Stock Price: At the time of writing, the stock price of Monsanto was down nearly 0.09% ($0.09) in the pre-market trade on Nasdaq. Clearly the initial reaction to the release is negative. We view the company’s below-than-expected third-quarter fiscal 2016 results as the primary reason responsible for this negative sentiment.

Check back our full write up on this MON earnings report later!

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