Recently, Monsanto Co. (MON) recently reported results for the first quarter of 2010. Net sales slumped 36% year over year to $1,697 million primarily due to lower sales of glyphosate-based herbicides in Brazil and Europe.

Monsanto reported a net loss of 3 cents per share, compared to a net profit of $1 per share in first quarter of 2009. The Zacks Consensus Estimate for the reported quarter was pegged at a profit of 1 cent per share.

For fiscal 2010, the Zacks Consensus Estimate is $3.26 per share, compared to $3.78 in fiscal 2009. Monsanto expects full-year 2010 EPS in the range of $3.10 to $3.30. The Zacks Consensus Estimate remained unchanged over the past month. However, 2 out of 17 covering analysts lowered their estimates while one analyst raised expectations. The Zacks Consensus Estimate for fiscal 2011 increased 3 cents in the last 30 days as 3 out of 16 analysts have raised their estimates, while 3 have lowered their estimates.

With almost an equal number of analysts raising and lowering their estimates, the Zacks Rank for Monsanto remains at #3, or a short-term rating of Hold.

Monsanto reaffirmed its previously announced cash flow guidance. It expects free cash flow for fiscal year 2010 to be in the range of $900 million to $1 billion Incorporatedluding an after-tax restructuring charge of $250 million. Monsanto expects net cash provided by operating activities at $2 billion to $2.2 billion, and net cash required by investing activities at $1.1 billion to $1.2 billion for fiscal year 2010.

We maintain our long-term recommendation of Neutral for Monsanto as we believe that its healthy balance sheet, along with a robust pipeline of new products and continuous growth in the seeds and genomics segment will drive long-term growth.

Zacks Investment Research

1. (MON) Monsanto Company Signs Licensing DealMonsanto Company (MON) and Limerick, Ireland-based biotechnology firm Stokes Bio Limited entered into a licensing...
2. (MON) Monsanto Reports a Net LossMonsanto Company (MON) reported results for the first quarter of 2010, which ended November 30,...
3. (MON) Monsanto Company Confirms GuidanceAt its investor conference call, Monsanto Company (MON) indicated that it will accelerate launches for...
4. (MON) Monsanto Wins New ContractMonsanto Company (MON) has signed a long-term supply contract with Air Products (APD), the leading...
5. (MON) Monsanto Beats Estimates and ReaffirmsToday before the market opened, Monsanto Co. (MON), the largest chemicals and biotech seed maker...
6. (MON) Monsanto Co – return on equity (ROE) of 22%, well above the industry average of 5%Monsanto Co. (MON) recently declared a quarterly dividend of 24 cents per share. The company...

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