Monsanto Releases Earnings, Misses Estimates

Monsanto Company (NYSE: MON) issued its first quarter 2018 earnings on Thursday. The world’s largest seed company posted a 17.1% decline in sales in of corn seeds and traits, due to lower volumes in the US and Brazil. Soybean seed and traits sales increased 21.3% during the period. Total seed and genomic sales decreased 4.2% year over year to $1.77 billion, and total sales remained relatively unchanged, increasing just 0.3% to $2.66 billion.

Net income attributable to Monsanto increased from $29 million to $169 million in the first quarter ($0.07 per share to $0.38 per share). First quarter 2017 results were negatively affected by a variety of restructuring and transaction expenses, while the results of the first quarter of 2018 were positively affected by $85 million due to the sale of Precision Planting to AGCO.

The company said low crop prices continued to hurt farmer income and would continue to affect margins. CEO Hugh Grant told analysts in the earnings conference call that he does not have “great hope for significant price improvement” for US corn seeds.

​The company did not provide a detailed outlook, as its merger with Germany’s Bayer is still pending. The deal is expected to close in early 2018.