Thursday: Monsanto Co. has reported its shares to have shown bearish outcomes by falling off with 1% in current trading session. However, its Q1 earnings have shown a better than expected estimate.
_______________________________________________________________________
Net loss as per company’s claims is approx. US$ 253 million in Q1 – i.e. 56 cents loss/share
IN COMPARISON TO
Net income of US$ 243 million in Q1 – i.e. per-share earnings of 50 cents
A YEAR AGO
_______________________________________________________________________
Monsanto on other hand had depicted 11 cents loss/share – i.e. less than 23 cents/share loss of FactSet consensus.
Sales of US$ 2.22 billion plunged as compared to US$ 2.87 billion in the year earlier period, and they were below the US$ 2.38 billion FactSet consensus.
Results, adjusted for one-time gains and losses, beat Wall Street estimates.
By the end of year 2018, agricultural firm hopes to come up with fewer strategies to reach around US$ 500 million/annual target in saving.
Moreover, keeping in consideration the financial pressure, the firm announced to terminate another 1,000 jobs as it expands a cost-cutting plan designed to deal with falling sales of biotech-corn seeds – total cuts of approx. 3,600 jobs, i.e. 16% workforce.
Why Monsanto needs this anyway? Well, this strategy will aid in generating approximately US$ 1.1 billion to US$ 1.2 billion in total savings, ascending graph from previous estimates of US$ 850 million to US$ 900 million.
Not to mention, Monsanto has come under renewed pressure to pursue a merger with Swiss agrochemical maker Syngenta after the ongoing merger between DuPont and Dow Chemical Co paved the way for an industry shake-up.
[According to Thomson Reuters I/B/E/S.: Analysts on average had expected a loss of 23 cents. Total net sales of the company were bearish at 22.7% to US$ 2.22 billion].
