Monsanto (MON) makes most of its revenue right before the planting season, which is the second and third quarters of the year. Seasonality affects the company’s sales since weather conditions can impact crop planting decisions.
Monsanto has the following two reporting segments:
- Seeds and Genomics
- Agricultural Productivity
Most of Monsanto’s sales come from its Seeds and Genomics segment. Let’s look now at analyst estimates for Monsanto’s 2017 revenue.
For fiscal 2017, the Wall Street consensus estimate for Monsanto’s total sales is $13.9 billion. That would translate to a rise of 2.9% year-over-year. Let’s see how the company performed in fiscal 2016.
In 2016, Monsanto’s total revenue fell 10.0%, largely due to a weakness in the agricultural environment. The corn seeds and traits business accounted for more than two-thirds of Monsanto’s overall sales. Sales from corn fell about 2.0% year-over-year. The soybean and traits business, which contributed 16.0% to Monsanto’s total sales in 2016, fell 5.0% year-over-year.
Growth estimates for peers
Wall Street analysts also expect growth in FMC’s (FMC) total revenue. They’re estimating a rise of 1.7% to $3.3 billion. However, for Syngenta (SYT), total revenue is expected to fall 4.3% to $12.8 billion. Similarly for Dow Chemical (DOW), total revenue is expected to fall 2.1% to $47.0 billion.
So there appears to be mixed expectations for the agricultural economy (SOIL) next year. In the next part, we’ll take a look at Monsanto’s profitability.