Monsanto Company (NYSE:MON)
Monsanto Co. Earnings & Technicals
On Wednesday before the market opened, Monsanto Co. announced third quarter results that missed analyst expectations and left shares with mixed results in the premarket session. The company announced adjusted third quarter earnings of $2.17 per share on $4.19 billion in revenues while analysts were looking for $2.40 earnings per share on $4.5 billion in revenues. The company is also expecting sales for fiscal 2016 to come in at the low end of the range that they previously provided between $4.40 and $5.10. Currently analysts have an average price target of $107.67.
Looking at the chart you will see that shares have been under pressure lately and are starting to trend down to their 200-day moving average at $93.89 after hitting yearly highs at $114.26 a couple weeks ago. Premarket prices were initially down but have climbed their way back up the $102 level after closing Tuesday at $101.09 equaling almost a percent move in value. However, we should see some resistance at the $1.04 and $105 levels with support coming in at the $100 and $96 level followed up with the 200-day moving average at $93.89.
CEO Comments
“Our long-term optimism within agriculture and our business remains,” said Hugh Grant, chairman and chief executive officer. “Our industry is running at a low point in the overall agriculture cycle and we’ve experienced an unforeseen level of challenges affecting our business in fiscal year 2016. Today, however, we anticipate positive resolution on the horizon for several of these challenges, coupled with early signs of recovery in agriculture. With the strategic changes we’ve made to our business, we’re well positioned to further strengthen our leadership role in the agricultural space through financial discipline and steadfast commitment to serving growers with new innovation.”
“While there is no formal update on the Bayer (DE:BAYGN) proposal, I have been personally in discussions with Bayer’s management over the last several weeks, along with others regarding alternative strategic options,” added Grant. “We continue to recognize the potential value these types of combinations can create as they accelerate innovation and increase choice for farmers across a broader set of crops, geographies and production practices, while improving the sustainability of agriculture around the world. That is why we remain open and will continue to actively engage in constructive dialogue to pursue value enhancing strategic options.”
MON Profile
Monsanto Company (NYSE:MON), together with its subsidiaries, provides agricultural products for farmers worldwide. It operates in two segments, Seeds and Genomics, and Agricultural Productivity. The Seeds and Genomics segment produces raw crop seeds, including corn, soybean, cotton, and canola seeds under the DEKALB, Channel, Asgrow, and Deltapine brands; and vegetable seeds, such as tomato, pepper, melon, cucumber, squash, beans, broccoli, onions, lettuce, and others under the Seminis and De Ruiter brands. It also develops biotechnology traits that assist farmers in controlling insects and weeds in corn, soybean, cotton, and canola crops under the SmartStax, YieldGard, YieldGard VT Triple, VT Triple PRO, and VT Double PRO brands; and Intacta RR2 PRO, and Bollgard and Bollgard II, as well as Roundup Ready and Roundup Ready 2 Yield, and Genuity brands.
This segment also licenses a range of germplasm and trait technologies to large and small seed companies. The Agricultural Productivity segment manufactures and sells herbicides for agricultural, industrial, ornamental, turf, and residential lawn and garden applications for weed control, as well as for control of preemergent annual grass and small seeded broadleaf weeds in corn and other crops under the Roundup and Harness brands. The company markets its products through distributors, independent retailers and dealers, agricultural cooperatives, plant raisers, and agents, as well as directly to farmers. Monsanto Company has a collaborative agreement with Novozymes to discover, develop, and produce microbial solutions. The company was formerly known as Monsanto Ag Company and changed its name to Monsanto Company in March 2000. Monsanto Company was founded in 2000 and is headquartered in St. Louis, Missouri.