Monsanto’s Q3 Profit Plunges 45%, Missing View (MON)

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Agricultural products maker Monsanto Company ( MON ) on Wednesday reported lower-than-expected third quarter earnings, hurt partially by lower pricing of its Roundup weed killer brand.

The firm reported third quarter net income of $384 million, or 70 cents per share, compared with $694 million, or $1.25 per share, in the year-ago period. Sales fell 6.75% from last year, to $2.96 billion.

Both of those figures missed analyst expectations. On average, Wall Street analysts expected earnings of 79 cents per share, on revenue of $3.17 billion.

Looking ahead, the company reaffirmed its previously-announced full-year outlook for adjusted earnings of $2.40 to $2.60 per share.

Monsanto shares fell 54 cents, or -1.1%, in premarket trading Wednesday.

The Bottom Line
We had removed shares of MON from our recommended list back on May 13, 2009 when the stock was trading $47.34. The company has a 2.24% dividend yield, based on last night's closing stock price of $47.34. The stock has technical support in the $40-$44 price area. If the shares can firm up, we see overhead resistance around the $55 price level. We would remain on the sidelines for now.

Monsanto Company ( MON ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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