What to Expect When Monsanto (MON) Reports Earnings Results Tomorrow
NEW YORK (TheStreet) -- Monsanto Co., (MON) is scheduled to release its fiscal 2015 second quarter earnings results before the market open on Wednesday morning.
Analysts are expecting the company, which provides farmers with agricultural products, to post a year-over-year decline in earnings per share and revenue for the most recent quarter.
Monsanto has been forecast to report earnings of $2.93 per share for the fiscal 2015 second quarter, and revenue of $5.58 billion.
For the fiscal 2014 second quarter Monsanto said it earned $3.15 per share on total net sales of $5.83 billion.
Shares of Monsanto are lower by 0.42% to $112.42 in mid-morning trading on Tuesday.
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Separately, TheStreet Ratings team rates MONSANTO CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate MONSANTO CO (MON) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Chemicals industry and the overall market, MONSANTO CO's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- The gross profit margin for MONSANTO CO is rather high; currently it is at 55.51%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 8.46% is above that of the industry average.
- MONSANTO CO's earnings per share declined by 29.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MONSANTO CO increased its bottom line by earning $5.13 versus $4.56 in the prior year. This year, the market expects an improvement in earnings ($5.82 versus $5.13).
- MON, with its decline in revenue, slightly underperformed the industry average of 4.9%. Since the same quarter one year prior, revenues slightly dropped by 8.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Even though the current debt-to-equity ratio is 1.10, it is still below the industry average, suggesting that this level of debt is acceptable within the Chemicals industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.90 is weak.
- You can view the full analysis from the report here: MON Ratings Report