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Monsanto Company (MON)

  • Apr. 2, 2014, 8:02 AM
    • Monsanto Company (MON): FQ2 EPS of $3.15 beats by $0.08.
    • Revenue of $5.84B (+6.8% Y/Y) beats by $30M.
    • Press Release
  • Apr. 2, 2014, 12:05 AM
  • Apr. 1, 2014, 5:30 PM
  • Mar. 28, 2014, 2:45 PM
    • Monsanto (MON +1.2%) is upgraded to Buy from Hold with a $130 price target, up from $106, at Miller Tabak, noting that the Street is bracing for limited-to-no upside to FY 2014 guidance because of uncertainty over the impact of tightening credit on Ukrainian seed volumes going forward and Brazilian weather impact on Intacta supply availability for next season.
    • The firm sees a positive shift in underlying agriculture macro trends enabling MON to bridge the earnings hurdle between recent multi-year highs, Roundup margins, strong seed prices and the next burst of material margin uplift from Intacta and IFS products in FY 2016.
  • Mar. 16, 2014, 4:53 AM
    • France's government has banned Monsanto's (MON) MON 810 genetically modified maize even though the country's highest court has twice struck down similar measures.
    • The agriculture ministry timed the latest diktat to prevent any sowing of the maize ahead of a debate on April 10 of a draft law that would ban genetically modified organisms.
    • While France would like to ban GMOs in the EU, the bloc is divided on the issue.
  • Feb. 27, 2014, 11:56 AM
    • DuPont (DD +0.3%) says it expects to generate as much as $500M/year in revenue from high-tech farm data services over the coming decade.
    • Next month, DD will begin selling to farmers its Encira suite of data-driven services aimed at increasing farmers' yields through analysis of their weather, soil and crop performance.
    • DuPont, rival Monsanto (MON +0.5%) and other seed and software companies are investing and striking deals with weather and equipment companies and soil analysis specialists to broaden the range of analysis they are able to deliver for farmers, which can mean more crops per acre and increased revenue at harvest time.
  • Feb. 20, 2014, 5:47 PM
    • DuPont's (DD) seed deliveries from its new $40M seed plant in Ukraine are being slowed by the intensifying violence in the world's third-largest corn exporting country, the president of the company's seed unit says.
    • No negative effect on revenue will occur if the delay to seed deliveries is resolved by the end of the planting season in three months, DD says, but a bigger concern is whether credit will still be available.
    • Other western companies with significant presence in Ukraine - such as Monsanto (MON), Deere (DE), Glencore (GLCNF) and ADM - either haven't commented or say they're monitoring events.
    | 1 Comment
  • Feb. 12, 2014, 7:59 AM
    • Monsanto (MON) hits another roadblock in its plans to build a $192M corn-seed production plant in Argentina's Cordoba province after local authorities rejected the company's environmental impact assessment.
    • MON says it accepts the findings and will move to bring the project in line with the new requirements.
    • The project has been on hold since September after clashes with protesters led MON to halt construction after completing ~30% of the work.
    | 1 Comment
  • Feb. 11, 2014, 2:24 PM
    • The EU appears set to approve Europe's second genetically modified crop for cultivation in 15 years, handing a victory to DuPont (DD +1.4%) over objections from most of the EU's member states.
    • At a meeting of EU ministers today, 19 out of the bloc's 28 nations opposed approving the 1507 corn developed by DuPont, but that wasn't a big enough majority to prevent the European Commission from approving the corn.
    • DuPont first sought approval for the crop 12 years ago but is now on the verge of success after multiple scientific safety reviews and several decisions by the European Court of Justice criticizing the Commission for delaying a decision.
    • Only one other genetically modified crop is allowed to be grown in the EU, a corn developed by Monsanto (MON) that is resistant to corn borer; it was approved by the bloc in 1998.
  • Feb. 6, 2014, 11:56 AM
    • The market seems to view DuPont (DD +1.3%) as a stodgy chemical company, but it is one of the world's biggest sellers of seeds, pesticides, fertilizers and other crop protection products; a Barron's profile says shares could climb 20% as investors start to give DuPont credit for those businesses.
    • DuPont delivered better than expected Q4 earnings last week, helped by fast-growing sales in its agriculture division; the unit contributed ~40% of 2013 operating profit and is DD's fastest-growing business, with sales that could rise at a double-digit rate during the next few years.
    • Compared with companies focused on agriculture chemical products, DD has been trading at a discount, at 14.2x estimated 2014 earnings; investors pay 19x-20x estimated earnings for Monsanto (MON) and Potash (POT).
  • Jan. 28, 2014, 6:41 PM
    • Critics of genetically modified crops protested at Monsanto's (MON) annual shareholders meeting today, calling for the company to provide a report on contamination in non-GMO crops and to stop fighting mandatory labels on foods containing GMO ingredients.
    • The requests came in the form of two shareholder resolutions that were backed by environmental, food safety and consumer activists groups which claimed that more than 2.6M members support their efforts; both resolutions failed easily after MON recommended their rejection.
    • Company officials say the debate over GMO crops has prompted them to rethink how they communicate about their products.
  • Jan. 28, 2014, 5:50 PM
    • Monsanto Company (MON) declares $0.43/share quarterly dividend, in line with previous.
    • Forward yield 1.59%
    • Payable April 25; for shareholders of record April 4; ex-div April 2.
    | Comment!
  • Jan. 13, 2014, 10:56 AM
    • The Supreme Court rejects organic farmers and seed sellers who want to challenge Monsanto's (MON) patents on genetically modified seeds, leaving intact a federal appeals court decision that threw out a lawsuit against MON and pointed to the company’s promise not to sue farmers whose crops contain traces of its products.
    • The farmers argued that MON’s promise is inadequate because it applies only to contamination up to 1%.
    | 1 Comment
  • Jan. 13, 2014, 8:48 AM
    • Shares of Tekmira Pharmaceuticals (TKMR) are up 30% before the bell.
    • The company says it has signed an option agreement under which Monsanto (MON) can license TKMR's delivery technology.
    • TKMR says the value of the option could reach $86.2M "following the successful completion of milestones."
    • TKMR also notes it is expecting a "near-term payment" of $16.5M.
    • MON has conducted initial testing of the technology in agriculture and the new agreement "will now focus on the development of new innovative biological solutions for farmers."
    • The option period is expected to be four years. (PR)
    | Comment!
  • Jan. 9, 2014, 2:39 PM
    • Monsanto (MON -3%) sinks after J.P. Morgan downgrades shares to Neutral from Overweight, seeing domestic corn prices at risk, which could limit pricing power, and likely lower planted corn acres in the U.S. and Brazil, which would challenge corn seed volumes.
    • Glyphosate prices and earnings may come under pressure in H2 2014 or during 2015 given China trends, the firm adds.
    • Morgan Stanley is more charitable, reiterating its Overweight rating and $150 price target on shares, citing a "solid" FQ1 performance against a demanding comp in corn, increased R&D and SG&A expense due to the Climate Corp. acquisition, further write-offs in fruits and vegetables, and a cotton acreage headwind; the firm expects MON will achieve at least the low end of its price/mix guidance.
    | Comment!
  • Jan. 8, 2014, 3:25 PM
    • Monsanto (MON +1.5%) tells analysts during its earnings call that it's making good progress on development of an herbicide-tolerant wheat, but commercial use of what would be the world's first biotech wheat remains several years away.
    • MON says the herbicide-tolerant wheat performed well enough in field testing to move from the "proof of concept" phase to early development work.
    • CEO Hugh Grant also says "there's more volatility and more headwinds across agriculture than there has been in the last few years."
    • The order book is tracking well with 2014 targets, MON says, reflecting a strong end to the U.S. harvest for the company's products; customer pre-pays are up Y/Y and confirm a solid commitment behind the order book.
    | Comment!
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Company Description
Monsanto Co is a provider of agricultural products for farmers. The Company offers corn, soybean, cotton, wheat, canola, sorghum and sugar cane seeds. Its segments are Seeds and Genomics and Agricultural Productivity.