Earnings per share
So far in this series, we’ve looked at analysts’ mean estimates for Monsanto’s (MON) sales, gross, and EBITDA (earnings before interest, tax, depreciation, and amortization) margins. In this part, we’ll look at EPS (earnings per share) expectations, a critical aspect to consider when assessing a company’s performance.
In 4Q17, analysts expect Monsanto’s EPS to be -$0.47, a fall from the -$0.44 seen in 4Q16. For the next four quarters, analysts expect the company’s EPS to be $4.99, an ~8% rise from the $4.60 seen in the four prior quarters. Whereas looking at EPS is key for investors in companies (MOO) such as Monsanto, Syngenta (SYT), PotashCorp (POT), and Agrium (AGU), they should use some caution, as EPS can be managed by companies. In the next part of this series, we’ll discuss Monsanto’s valuation and see what investors are paying for the stock prior to its earnings release.