Will Monsanto’s 4Q15 Earnings Meet Expectations?



Monsanto’s 4Q15 earnings

Monsanto (MON) is set to release its 4Q15 results on October 7, 2015, before the market opens. Wall Street analysts are expecting the company to report flat to -$0.02 earnings per share (or EPS) for the quarter. So far, 2015 has been one of the worst years for the company with a year-to-date return of -28.17%. The stock is trading at ~$87, down from the high of $126 during the year. The VanEck Vectors Agribusiness (MOO), which has about 7.8% of its holdings in Monsanto, is down 11.6% year-to-date.

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  • This year has been rough for farm economics, which is evident in the performances of related companies.
  • DuPont (DD) had a negative return of 34%, Dow Chemicals (DOW) had a negative return of 3.5%, and Syngenta (SYT) returned 1.2% year-to-date.
  • In this series, we will delve into some of the most recent updates affecting Monsanto and what to expect in the upcoming earnings release.

About Monsanto

Monsanto is one of the leading global agribusiness companies. It provides biotech seeds, herbicides, biotechnology traits, and precision agriculture products that aim to improve yields and lower costs for farmers.

The company has two segments:

  • Seeds and Genomics
  • Agricultural Productivity

Monsanto has a presence in more than 150 countries and reaches its end customers (farmers, garden professionals, and consumers) through independent retailers, distributors, dealers, agents, and agricultural cooperatives.

In 2015, Monsanto has faced several headwinds that will likely cast a shadow on the upcoming earnings. In the next part of this series, we will look at some of the challenges the company has faced.


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