Monsanto Value Drops After Revising Outlook Down
- For the revised forecast, 25 cents to 30 cents a share is accounted for by currency, Monsanto said. Another 30 cents is from "macro factors" weighing on the seeds and genomics business, the company’s largest by revenue.
- For the fiscal second quarter, Monsanto now expects earnings per share of $2.35 to $2.45, excluding one-time times. The average of 19 analysts’ estimates compiled by Bloomberg was for $2.84.
- The company cut its full-year free cash flow projection to $1.4 billion to $1.6 billion from $1.6 billion to $1.8 billion.
- It now sees "relatively flat" full-year gross profit growth from seeds and genomics. Its agricultural productivity business’s gross profit will now be closer to the mid-point of the range of $900 million to $1.1 billion.
- Full-year operating expenses, excluding costs related to restructuring and environmental and litigation settlements, are seen down slightly.