Earnings Preview: Monsanto Company

| About: Monsanto Company (MON)

Company Profile

Monsanto Company, together with its subsidiaries, provides agricultural products for farmers in the United States and internationally. It operates in two segments, Seeds and Genomics, and Agricultural Productivity.

Monsanto Company (NYSE:MON) is scheduled to report its third quarter earnings results on June 27, 2012, before market open.

Technical Overview

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Monsanto has a market cap of $41.98 billion and it is currently trading around $78.70 with a 52 week range of $58.89 to $83.94. The stock has risen 12.32% year to date. The following table provides the key financial ratios for Monsanto:

Key Ratio Value
Current Ratio 1.93
PEG 1.93
P/E 22.29
Forward P/E 18.65
Profit Margin 14.98%
Return On Assets (ROA) 9.69%
Return On Equity (ROE) 16.64%

Recent News

  • On June 6, 2012, Monsanto announced that its Board of Directors has approved a new three-year share repurchase program and declared a quarterly dividend.
  • On June 5, 2012, The Missouri Botanical Garden in St. Louis, Mo., U.S.A. has received a generous three-year, $3 million gift from Monsanto Company to support its work on the development of a World Flora Online.

Here's a list of recent changes to analyst ratings:

  • On May 30, 2012, Canaccord Genuity's Keith Carpenter upgraded shares of Monsanto from HOLD to BUY and boosted the price target from $81 to $89.
  • On May 30, 2012, Goldman Sachs reiterated a BUY rating on Monsanto and raised the price target from $90 to $92.

Analyst Guidance and Earnings History

The third quarter revenues are expected to be $4.00 billion when compared to $3.59 billion for the same quarter last year. Earnings per share for the third quarter are expected to be $1.6 a share, up from a $1.26 a share in the year-ago period.

The average price target from analyst for Monsanto is $88.89 with average rating is OVERWEIGHT.

Out of the last 4 quarters, Monsanto has met or exceeded the EPS estimates all the 4 times. The following chart shows the Analyst estimates history and the actual EPS results:

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The following chart shows the annual summary of Sales and Net income for Monsanto:

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Sources: Some of the data is taken from Google Finance, Yahoo Finance, Finviz and investor sites.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in MON over the next 72 hours. I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.