Monsanto Company (MON – Free Report) reported better-than-expected results for fourth-quarter fiscal 2017 (ended Aug 31, 2017).
Earnings
Quarterly adjusted earnings from ongoing business came in at 20 cents per share, as against the Zacks Consensus Estimate of a loss of 38 cents per share. The bottom line also came in higher than the year-ago tally of 7 cents per share.
Adjusted earnings from ongoing business came in at $5.50 per share in fiscal 2017 compared to $4.48 per share recorded in the year-ago period.
Revenues
During the reported quarter, Monsanto generated revenues of $2,686 million, up 4.8% year over year. In addition, the top line comfortably surpassed the Zacks Consensus Estimate of $2,411 million.
On a segmental basis, revenues from Seeds and Genomics were up 11.6% year over year to $1,747 million. However, revenues from Agricultural Productivity dipped 5.8% year over year to $939 million.
Revenues for fiscal 2017 came in at $14,640 million, as against $13,502 recorded in the year-ago period.
Monsanto Company Price, Consensus and EPS Surprise
Cost & Margins
Monsanto’s cost of sales decreased 5.5% year over year to $1,346 million during the reported quarter. Gross profit margin expanded 440 basis points (bps) to 49.9% during the quarter.
Operating expenses during the quarter came in at $1,403 million, flat year over year. Interest expenses were $114 million, up 9.6% year over year.
Gross profit margin for fiscal 2017 came in at 54.2%, advancing 220 bps year over year. Operating expenses for fiscal 2017 were $4,725 million, up 1.8% year over year.
Balance Sheet and Cash Flow
Exiting fiscal 2017, Monsanto had cash and cash equivalents of $1,856 million, higher than $1,676 million recorded at the end of fiscal 2016. Long-term debt was $7,254 million, as against $7,453 million recorded on Aug 31, 2016.
In fiscal 2017, Monsanto generated net cash of $3,226 million from operating activities compared with $2,588 million recorded in the year-ago period. Capital spending flared up 34.3% year over year to $1,240 million.
