Monsanto (MON) Tops Q3 EPS by 17c

Monsanto (NYSE: MON) reported Q3 EPS of $1.93, $0.17 better than the analyst estimate of $1.76. Revenue for the quarter came in at $4.23 billion versus the consensus estimate of $4.17 billion.

Fiscal Year 2017 Outlook

The company expects as-reported EPS to be at the high end of the range of $4.09 to $4.55, and confirms EPS at the high end of the range of $4.50 to $4.90 on an ongoing basis.

The Seed and Genomics segment gross profit is now expected to be up high-single digits in terms of percentage for the year. For the Agricultural Productivity segment, gross profit is still expected to be in the range of $850 to $950 million as the segment continues to deliver expected results.

Looking ahead to fourth quarter, the company expects to receive the benefit of about $70 million in non-core asset sale gains from strategic deals. Roughly half of these gains are expected to benefit the Agricultural Productivity segment, and half are expected to benefit the Seeds and Genomics segment. Both are expected to be recorded in other income and are part of the company's ongoing strategic portfolio management efforts.

For the full year, the company still expects these earnings to translate to the high end of the range of $1.2 billion to $1.6 billion of free cash flow, reflecting operating cash flow at the high end of the range of $2.4 billion to $2.8 billion and capital expenditures of $1.2 billion for fiscal year 2017. (For a reconciliation of free cash flow, see note 1.)

Total operating spend in 2017, excluding the pending Bayer transaction related costs and restructuring charges, is still anticipated to increase mid-single digits, as a percent, for the year.

(Updated)

For earnings history and earnings-related data on Monsanto (MON) click here.

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