Analysts are weighing in on how Monsanto Company (NYSE:MON), might perform in the near term. Wall Street analysts have a much less favorable assessment of the stock, with a mean rating of 2.5. The stock is rated as buy by 7 analysts, with 3 outperform and 8 hold rating. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for strong sell.
For the current quarter, the 17.00 analysts offering adjusted EPS forecast have a consensus estimate of $2.42 a share, which would compare with $2.39 in the same quarter last year. They have a high estimate of $2.73 and a low estimate of $2.16. Revenue for the period is expected to total nearly $4.50B from $4.58B the year-ago period.
For the full year, 19.00 Wall Street analysts forecast this company would deliver earnings of 4.63 per share, with a high estimate of $4.80 and a low estimate of $4.26. It had reported earnings per share of $5.73 in the corresponding quarter of the previous year. Revenue for the period is expected to total nearly $13.69B versus 15.00B in the preceding year.
The analysts project the company to maintain annual growth of around 8.14% percent over the next five years as compared to an average growth rate of 14.87% percent expected for its competitors in the same industry.
Among the 15 analysts Data provided by Thomson/First Call tracks, the 12-month average price target for MON is $104.80 but some analysts are projecting the price to go as high as $132.00. If the optimistic analysts are correct, that represents a 21 percent upside potential from the recent closing price of $109.15. Some sell-side analysts, particularly the bearish ones, have called for $80.00 price targets on shares of Monsanto Company (NYSE:MON).
In the last reported results, the company reported earnings of $2.39 per share, while analysts were calling for share earnings of $2.07. It was an earnings surprise of 15.50%percent. In the matter of earnings surprises, the term Cockroach Effect is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.
Monsanto Company, together with its subsidiaries, provides agricultural products for farmers worldwide. It operates in two segments, Seeds and Genomics, and Agricultural Productivity. The Seeds and Genomics segment produces raw crop seeds, including corn, soybean, cotton, and canola seeds under the DEKALB, Channel, Asgrow, and Deltapine brands; and vegetable seeds, such as tomato, pepper, melon, cucumber, squash, beans, broccoli, onions, lettuce, and others under the Seminis and De Ruiter brands. It also develops biotechnology traits that assist farmers in controlling insects and weeds in corn, soybean, cotton, and canola crops under the SmartStax, YieldGard, YieldGard VT Triple, VT Triple PRO, and VT Double PRO brands; and Intacta RR2 PRO, and Bollgard and Bollgard II, as well as Roundup Ready and Roundup Ready 2 Yield, and Genuity brands. This segment also licenses a range of germplasm and trait technologies to large and small seed companies. The Agricultural Productivity segment manufactures and sells herbicides for agricultural, industrial, ornamental, turf, and residential lawn and garden applications for weed control, as well as for control of preemergent annual grass and small seeded broadleaf weeds in corn and other crops under the Roundup and Harness brands. The company markets its products through distributors, independent retailers and dealers, agricultural cooperatives, plant raisers, and agents, as well as directly to farmers. Monsanto Company has a collaborative agreement with Novozymes to discover, develop, and produce microbial solutions. The company was formerly known as Monsanto Ag Company and changed its name to Monsanto Company in March 2000. Monsanto Company was founded in 2000 and is headquartered in St. Louis, Missouri.