Monsanto Crushes Estimates

Monsanto (NYSE: MON  ) reported earnings on Jan. 5. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Nov. 30 (Q1), Monsanto beat expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly, and earnings per share grew significantly.

Margins improved across the board.

Revenue details
Monsanto reported revenue of $2.4 billion. The analyst polled by S&P Capital IQ foresaw sales of $2 billion. Sales were 33% higher than the prior-year quarter's $1.8 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.23. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.17 per share. GAAP EPS of $0.23 for Q1 were much higher than the prior-year quarter's $0.01 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 44.9%, 20 basis points better than the prior-year quarter. Operating margin was 10.0%, 640 basis points better than the prior-year quarter. Net margin was 5.2%, 490 basis points better than the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $4.5 billion. On the bottom line, the average EPS estimate is $2.10.

Next year's average estimate for revenue is $12.9 billion. The average EPS estimate is $3.50.

Investor Sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Monsanto is outperform, with an average price target of $81.

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