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Monsanto’s Fiscal 4Q16 Earnings: Giving the Market a Lift

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Monsanto bounces back

On Wednesday, October 5, Monsanto (MON) reported its fiscal 4Q16 and fiscal 2016 earnings before the market opened. Following the opening bell, the stock drifted to a low of $101.90, but it rebounded on positive cues from its earnings. Monsanto closed up 1.6%, touching $103.20 at the close of trading on October 5.

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Earnings positive

Monsanto (MON) reported an ongoing EPS (earnings per share) of $0.07 per share in fiscal 4Q16, which excludes the effect of currency changes. MON’s EPS climbed from -$0.19 per share in fiscal 4Q15.

The company’s positive earnings also beat the analysts’ estimate of -$0.02 per share. The company’s fiscal 2016 EPS was $4.48, compared with $5.73 in fiscal 2015.

The weak agribusiness environment (XLB) coupled with competitive forces have impacted the company’s performance over the past year. During its earnings call, Monsanto gave details about some of its initiatives, which are expected to lead to earnings growth in the next year.

Series overview

In this snapshot series, we’ll look at Monsanto’s (MON) fiscal 4Q16 earnings results in detail. We’ll analyze the factors that influenced the company’s results, and we’ll take a look at management’s comments and guidance for the rest of the year.

We’ll also discuss the development of the company’s merger with Bayer, which is slated to be completed by the end of 2017. This merger comes along with the Dow Chemicals (DOW) and DuPont (DD) merger, as well as the pending Syngenta (SYT) and ChemChina merger.

Let’s start by seeing how Monsanto’s sales performed in fiscal 4Q16.

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