Will Monsanto (MON) Stock be Helped by Earnings Beat?

NEW YORK (TheStreet) -- Monsanto (MON) shares are down 2.46% to $110 in early-market trading on Wednesday despite the biotech agricultural company reporting earnings ahead of analysts' expectations today.

The St. Louis-based company reported third quarter net income of $1.14 billion, or $2.39 per share, well ahead of Thomson Reuters I/B/E/S/ consensus $2.07 per share expectations.

Revenue of $4.58 billion for the period missed analysts' $4.65 billion expectations.

Separately, the company also said that it would continue to pursue a merger with rival Syngenta (SYT).

Equipping farmers with the right set of innovations that will help solve tomorrow's food challenges today requires more than a new company - it requires a new vision and approach," CEO Hugh Grant said in a statement. "Our proposal to combine with Syngenta is an exciting logical next step for our business, offering the opportunity to accelerate innovation and support a more diverse group of farmers around the world."

Earlier this week Syngenta reiterated that the company was rejecting Monsanto's $45 billion bid which it said undervalues the agribusiness company.

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 expanding profit margins, good cash flow from operations, notable return on equity, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

MON Chart MON data by YCharts

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