Monsanto Third Quarter Earnings

Monsanto Company (NYSE:MON) announced its results for the most recent quarter on June 27, 2012. Monsanto manufactures agricultural products.

In most situations, when earnings do not meet analyst estimates, a business' stock price will tend to drop. On the other hand, when actual earnings beat estimates by a significant amount, the share price will likely surge. SEE: Surprising Earnings Results

The Numbers: Monsanto beat expectations with its latest EPS and revenue figures. The company reported $1.74 per share versus the $1.59 per share estimate and revenues of $4.22 billion versus the $4 billion estimate. EPS rose 35.9% while revenue climbed 16.9% from the same period last year. Net income for the third quarter was up 35.4% to $937 million.



Management Quote: "With our most significant selling seasons wrapped up, the third quarter gives us a near complete view of our business for the fiscal year and I feel very good about where we stand," said Hugh Grant, Monsanto's chairman, president and chief executive officer. "We've achieved excellent business results this year, but more importantly we've continued to receive positive response to our products from farmers. As I look to 2013 and beyond, I am confident as our momentum is now validated with sustained business results and I believe the opportunity ahead for our customers, our business and our owners is significant."



Looking Ahead: Analysts seem more negative about the company's results for the next quarter than 90 days ago. The average estimate for the fourth quarter has moved from a loss of 21 cents a share to a loss of 38 cents over the last 90 days. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. The average estimate for the fiscal year is $3.70 per share, a rise from $3.51 90 days ago.