Agricultural products company,
) reported a loss per share from continuing operations of 47
cents in the fourth quarter of fiscal 2013 (ended Aug 31, 2013),
wider than the Zacks Consensus Estimate of a loss of 43 cents.
Reported earnings were also wider than the year-ago loss from
continuing operations of 44 cents.
For fiscal 2013, earnings per share from continuing operations
came in at $4.56, missing the Zacks Consensus Estimate of $4.58
by two cents. Reported earnings also beat the year ago earnings
of $3.70 by 23.2%.
: Fourth-quarter revenues of $2.2 billion missed the Zacks
Consensus Estimate of $2.3 billion by 2.4%. However, revenues
increased 5.0% year over year.
On a segment basis, revenues from the Seeds and Genomics
segment decreased 1.5% in the quarter to $1.2 billion, driven by
an increase in corn seeds and traits demand in the U.S. as well
as international businesses.
Revenues from the Agricultural Productivity segment increased
13.6% in the quarter to $1.0 billion, driven by recovery in
Yearly revenues were recorded at $14.9 billion, compared with
$13.5 billion in fiscal 2012. The result missed the Zacks
Consensus Estimate of $15.0 billion.
Cost & Margins
: Monsanto's gross profit margin was almost flat year over year
at 42.0% for the fiscal fourth quarter. Operating expenses were
recorded at $1,213.0 million, up from $1,138.0 million recorded
in the year-ago comparable period.
In the reported quarter, selling, general and administrative
and research and development expenses, as a percentage of net
sales, were recorded at 35.0% and 20.0%, respectively.
Balance Sheet/Cash Flow
: Exiting fiscal fourth-quarter 2013, Monsanto's cash and cash
equivalents were approximately $3.7 billion, compared with $3.3
billion recorded at the end of fiscal 2012. Long-term debt was
almost flat at $2.1 billion, year over year.
Cash flow from operations in fiscal 2013 was $2.7 billion
compared with $3.1 billion in year-ago. Total capital spending
was roughly $741.0 million against $646.0 million spent in the
year ended Aug 2012.
Moreover, Monsanto announced its plans to acquire The Climate
Corporation for a cash consideration of $930.0 million. Climate
Corporation provides unique software and insurance products to
the farmers in order to protect and improve the various farming
operations. The acquisition of Climate Corporation will enhance
Monsanto's Integrated Farming Systems platform along with
expanding the research and expenditure pipeline.
: Monsanto expects the acquisition of Climate Corporation to
consummate in the fiscal first quarter of 2014. Along with the
contribution from the acquisition, core sales are expected to
contribute in the coming fiscal. Based on these factors, Monsanto
now expects earnings per share in the range of $5.00 to $5.20 in
Gross profit in fiscal 2014 is expected in the range of $8.4
billion to $8.7 billion. Management expects to generate free cash
flow in the range of $600.0 million to $800.0 million in fiscal
Other Stocks to Consider
Monsanto currently carries a Zacks Rank #3 (Hold). Other
stocks worth a look in the chemicals industry are
The Andersons, Inc.
The Scotts Miracle-Gro Co.
). While Limoneira carries a Zacks Rank #1 (Strong Buy),
Andersons and Scotts Miracle-Gro Company carry a Zacks Rank #2
ANDERSONS INC (ANDE): Free Stock Analysis
LIMONEIRA CO (LMNR): Free Stock Analysis
MONSANTO CO-NEW (MON): Free Stock Analysis
SCOTTS MIRCL-GR (SMG): Free Stock Analysis
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