Monsanto Beats, But Not Enough (MON)

Monsanto Co. (NYSE: MON) has just reported its quarterly earnings report.  The agriculture and seed giant has posted $1.45 EPS on $3.588 Billion in total sales.  First Call had estimates at $1.34 EPS on $3.71 Billion in revenues. 

Monsanto said it now expects its full-year 2008 EPS at roughly $3.63 on a reported basis and approximately $3.40 on an ongoing basis.  First Call’s year-end estimates for Fiscal Aug-2008 are $3.39 EPS on $11.41 Billion in revenues. 

The company is still maintaining that it targets more than a doubling of gross profit in 2012.

If the company goes out on a limb in its 9:30 AM EST conference call and forecasts fiscal Aug-2009, those estimates are $4.22 EPS on $13.13 Billion in revenues.  This is factoring in growth of 24% on earnings per share and growth of 15% in revenues.

While the bottom line is a win and while the company has maintained its long-term targets, the shares are taking a breather so far this morning.  Shares are down almost 3% at $131.76 in active pre-market trading.  After the huge run we’ve seen in the stock, Wall Street wanted more than it just saw.

Jon C. Ogg
June 25, 2008