This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Monsanto: Investors Are Getting Restless

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player
NEW YORK ( TheStreet) -- Monsanto's (MON - Get Report) top executives will have some explaining to do when they convene for the company's quarterly earnings conference call on Wednesday morning.

Analysts and portfolio managers will likely grill executives -- especially Monsanto's Scotsman CEO Hugh Grant -- about the performance of the company's new corn seed, planted commercially for the first time this year, called SmartStax. Billed as an upgrade, a kind of corn 2.0, SmartStax replaced an earlier version, called TripleGuard, and represented Monsanto's greatest hope for fueling future profit growth.

Much to Monsanto's chagrin, however, early results from this harvest season indicate that the bioengineered plants that have bloomed from those seeds haven't been as prodigious with maize as other brands, or even the older Monsanto seeds. Investors have lambasted Monsanto shares, taking them lower by 10% in September alone. The stock has lost about 41% of its value during 2010.

"This will be the first time management has had an opportunity to address the public on the issue," noted Colin Isaac, an analyst at Atlantic Equities, a research house that advises institutional investors. "Maybe they'll have something to say to contradict the negative sentiment."

The St. Louis company already pre-announced fourth-quarter earnings in late August -- forecasting a range between $2.40 and $2.45 a share for the fiscal year 2010, which ended Aug. 31 -- so there's little contention surrounding the financial results it will report before the bell Wednesday, especially since the quarter is a seasonally slow one to begin with.

All eyes will be focused, therefore, on what Monsanto has to say about 2011. The yields produced by SmartStax during the harvest this fall will impact next year's business, after all, serving either to bolster the company's corn-seed marketing or torpedo it. Most analysts have trimmed their estimates for 2011 SmartStax sales volumes, which are measured in the number of acres planted with a crop seed.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MON $93.68 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs