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Q3 Earnings Bloodbath Continues With Terrible Monsanto Results: Company Fires 2,600 As It Boosts Buyback
It had been quite a downcast start to the third quarter earnings season following very disappointing earnings from Illumina, Adobe and Yum Brand. Then Moments ago agri-giant Monsanto made it four out of four when it reported a huge miss on both the top and bottom line, with Q4 revenue of $2.36 billion, far below the $2.79 billion consensus estimate and down 10% from a year ago. The EPS was likewise a disaster, which at at loss of $0.19 in Q4, was also far below the consensus estimate of ($0.03).Q4 EBIT tumbled to -$773 million, while full year EBIT was down 15% to $2.2 billion.
This is what the company justified this shockingly bad result:
Full-year net sales results were driven by the performance of the company’s Seeds and Genomics segment and licensing agreements, which were more than offset by foreign currency headwinds, declining corn acres and declines in glyphosate pricing.
Then there was the topic of cash flow: Monsanto was proud to announce that in 2015 it $3.1 billion in cash from operations, the same as in fiscal year 2014. Free cash flow was a source of $2.1 billion in fiscal year 2015, compared with a source of $959 million in fiscal year 2014. The fiscal year 2015 cash flow results primarily reflected the absence of The Climate Corporation acquisition and the BioAg Alliance with Novozymes.
So, great news right: the company was generating solid cash flow right. Well, yes, until one realizes that in 2014 MON repurchased $7.1 billion in stocks, and then another $835 million in 2015. In other words the company spent more than it generated in the past two years on buybacks.
Worse, MON spent $7.1 billion buying back stock at an average price of just over $115/share in 2014. Its stock is now $85, which as every Treasurer knows is a great way to generate a -25% return on cash investment...
... but to assure a huge grin on the faces of activist shareholders who were delighted to sell to the company at $125 last summer.
As for MON, we are happy that the company has not learned its lesson:
Monsanto plans to enter into a new $3 billion accelerated share repurchase program under its current share repurchase authorization, as it progresses toward its targeted capital structure. The company plans to begin the new accelerated share repurchase program in the near-term and complete it sometime in the next six months.
Because when all else fails, a short-term pop and a long-term drop is precisely what "activist shareholders" demand.
And as for all else failing, one just needs to look at the outlook:
- Monsanto expects to achieve ongoing EPS of $5.10 to $5.60 in fiscal year 2016.
This compares to consensus estimates of $6.22. What is to blame this time?
Ongoing EPS guidance reflects in part an estimated $0.35 to $0.40 of headwinds from currency, $0.50 to $0.85 of headwinds from Agricultural Productivity pricing declines and $0.20 to $0.30 from elevated cost of goods for corn and the anticipated launch costs of Roundup Ready® Xtend soybeans. EPS on an as-reported basis is expected to be $4.44 to $5.01 in fiscal year 2016, reflecting additional charges related to the first phase of announced restructuring actions.
So pretty much everything including central bankers.
It gets worse:
The company projects free cash flow in the range of $1.6 billion to $1.8 billion for fiscal year 2016. The company expects net cash provided by operating activities to be $2.7 billion to $3.1 billion, and net cash required by investing activities to be approximately $1.1 billion to $1.3 billion.
Consensus cash flow estimate: $2.56 billion. But at least more than all of the company's net cash will be used to fund the stock buyback.
And while Monsanto management is delighted to hand over all of its cash flows to investors (and management's equity-linked compensation bonus), there is something for workers too: a pink slip.
The plans also include an expected separation of approximately 2,600 employees over the next 18-24 months.
Which, incidentally, is what in the New Normal is called "growth."
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Kill this fuckin' beast
Grow as much of your own food as possible. It's a little work, but very rewarding. My wife cans everything from tomatoes to chicken broth... there's nothing like the real thing. Avoid Franken-Farms as much as possible. Starve them with boycotts... nothing else seems to work.
How to grow chicken broth?
Neil Young is smiling
I don't feel sorry for laid-off Monsanto employees. Working for evil has its consequenses.
Are you baffled that you don't just fly off into space you scientifically illiterate mouth breathing moron?
<- totally scientifically iliterate
Hey shithead. He's right.
At least with Goldman, you know they're trying to rip you off. The assholes at Monsanto are trying to patent life and have led to thousands of suicides around the world and an increase in diseases possibly linked to GMO food (they certainly haven't been proven safe--implying anything as such makes YOU the scientifically illiterate moron).
Have you ever heard of something called a "university?" You fucking illiterate moron.
Yep, they are all ad homs. I see it now.
I know a thing or two about a university. I'm sitting at my desk here, waiting for the students I teach to come by and ask for help with their...wait for it...STATISTICAL questions. How many things that we put into our body are allowed to be consumed without testing? Go ask the FDA. Ask any drug company ho wlong it takes to go through all the levels of FDA approval. Now ask Monsanto how much they have been tested. That's right...three months! Three months! Nevermind what happens eighty years later. Who really cares?
Either come with facts or go home.
Say nothing retard.
how much ya bein paid?
Not as much as you ignoramus. Change your drool cup btw.
I've heard of this thing called university of which you speak. My sister went to one called Dartmouth where she majored in beer pong. I remember Bob Marley singing about this too. He said:
"Building church and university,
deceiving the people continuously.
Them graduating theives and murderers,
sucking the blood of the sufferers."
Pretty apropos for Monsanto. I'm pretty sure their employees would have been graduates of this thing you call university.
Clueless retard.
Did you get Tourettes from eating too much Monsanto GMO Bt, RoundUp and Cauliflower Mosaic Virus?
Are all of your posts content-free ad homs?
If you have something to say of a factual nature, please feel free to do so. Otherwise Fight Club is going to majorly kick your ass repeatedly.
We don't like Monsanto playing around with our food. We see the link between this and many of the modern diseases. When we have changed back to growing our own food using heirloom breeds, we have seen health improve. Might we be making the "post hoc ergo propter hoc" fallacy? Might we be seeing correlation and not causation? Sure? But does that make our experimentation scientifically illiterate? Well, to this prof at one of the top science institutions in the country, he sees a scientific experiment in the making. And since he does some stats, he knows that the plural of anecdote is not data. Do you know any of this?
You are a fucking moron too. Nobody has posted anything substantiating their assertions. So fuck you mouthbreathing science illiterate. :)
Monsanto's market cap is (at current prices) about $41 billion. Yanking another $3B off the market, when combined with this year's nearly $1B and the $7B the last few years ain't no small potatoes. They're not just feeding some cash back to investors, they're collapsing the company.
I'm telling you, all of this shit is gonna be taken private someday. All of it. You won't have to worry about a market crash because shares will never trade on an open exchange again. They'll all be private deals at negotiated prices with little to no disclosure.
So may the farce be with you?
Fuck Monsanto. Poisoner of 3 generations and counting.
"every Treasurer knows is a great way to generate a -25% return on cash investment..."
Yeah, fucked the "company" royally, but those that own (and cashed out) the stock made out real well..wonder who owns a ton of Monsanto shares? The "executives" of course...and they've cahsed out MILLIONS!..while the employees get pink slips...need to hang these fuckers PRONTO!
Oct 20, 2014 GRANT HUGH Officer 90,000 Direct Sale at $112.38 per share. $10,114,200 STRAIGHT INTO HIS POCKET...and he's JUST ONE of the sellers!
https://finance.yahoo.com/q/it?s=MON
all of this shit is gonna be taken private someday
That’s my position also. Get out of this reporting nightmare, away from the gov/analysist, get away from bothersome investors, make the shares cheap for buyback, lock down on the media and keep workers in the dark about profits. It is a business, not an American building program or a social working program. Slowly it is coming.
@NoDebt,
I've thought that very thing for some time now.
It's ALL going to be in private hands.
It's ALL going to be in private hands.
That sounds like how a free market works.
In your immature and juvenile quest to blog something humorous you appear stupid instead, Crocodile.
Now here is company that i hope dies
shame on anyone working there
you are totally retarded.
Fool me once, shambers on me, fool me twice, shambers on you.
The quicker it is done away with, the better for all.
What a fucking evil company it is. Satan's pride and joy I am sure.
Funny, Croc. Like vegetables, there are many varieties of chicken seeds... Rhode Island Reds, Capons, etc...
Seriously... we buy whole organic chickens and boil the hell out of them (there's a lot of flavor to be extracted even from the bones)... along with carrots, celery, onions... Then we jar the clear broth with a pressure cooker. It makes the best base for soups all winter long.
Nice! The bones provide marrow and flavour, just like beef bones used making beef stock, this is a key source of nutrition. I make my own too, keeps me out of the gmo/artificial food based product center aisles of the supermarket. I'm looking into some of those Rhode Island Red seeds....
We raise our own straight from seeds. The seeds are pretty big, actually. Our seeds are a nice brown color. The only thing is they have to be planted under another one of them. Our Austrolorps love to have the seeds planted under them.
Grow chickens, squeeze juice out into jars. Repeat.
Where this ends: One guy sitting on top of a giant heap of GMO seeds while the rest of the planet starves to death around him.
Oh come now, you know the establishment would never tolerate putting all that power into the hands of just one person. Tell me you believe that like everyone else.
Bad news for Monsanto is good news for humanity.
Yum! has totally fucked up Pizza Hut; one of my teens went to a party...Pizza Hut Pizza served...said it was "Gross!"...and no one ate it...Teens won't eat their pizza...that is fucked up!
Yum! Sold off A&W/LJS's, whomever owns it now is doing a good job. I rarely eat that stuff, but everytime I drive past there's decent traffic at the store.
Maybe they just nailed a pretty location.
Location was an LJS forever and it was struggling...poor service, crappy food and a dirty/tired store. It closed, remodeled to add A&W, re-opened with an all new crew...place is clean and fast!..."Food", i'm being kind, is fresh and hot...Whomever took it over knows how to run a restuarant; and appears not to be in it for the short haul "asset stripping" road to "riches" Hedge Fund (aka Romney) model of business "success".
Well then i'm happy for them, I just own a dollar store in a good location.
Speaking of "location"..There’s a strip mall here in an A+++ location...routinely driven by it for 20 some years...and it's always fully leased...during the Bush Economic Collapse, only 1 store closed and it was quickly replaced.
Over the summer, FIVE vacancies (18 slots total in strip mall = 28% vacant) have occurred and were NOT replaced...the owner has resorted to installing a huge 4x8' sign out front advertising the vacancies..It’s been up for a month...still 5 vacancies..That is one bad omen for the local economy...
how can something so evil, have such shitty earnings? maybe it should go back to making agent orange.
Evilness aside, Monsanto still produces a real product.
perhaps I can interest you in a financial "product"?
So many bullshit paper/digital promises, so few real assets...
Wrong. It's the logic of the Fed at the genetic level, so it's much worse than financialisation. Nothing real about it at all, just life-destroying evil.
You are an idiot. The point is that even a nuclear fucking bomb (life destroying evil) requires physical resources and real material.
all the financial horseshit is make believe you dumb fuck.
Yet another scared useless fucking paper pusher. Can't wait to take your head.
thanks for demonstrating the lack of critical thinking in 'merica!
tick tock motherfucker!!!
Is that you, Dale Carnegie?
LOP, it all depends on your definition of "real". Does Monsanto produce a "real" product? Yes, in the sense that the product actually exists, but no, in the sense that it has positive value. A bank robber takes positive character traits, courage, creativity, enterprise, and risk appetite, and uses them to produce a negative result. The same is true for Monsanto. Roundup and GMO's contribute only to death, disease, and destruction. Licensing seed only creates sub-dependent consumers out of otherwise independent producers. The scale of positive downstream effects from Monsanto's business model is nil, while the scale of negative downstream effects is huge. MOnsanto is a bank-robber, or better, a vampire, sucking life and health out of its neighbors. Monsanto is the perfect model for the US in every respect- evil, corrupt, manipulative, untruthful, and ultimately self-destructive.
In the context I am refering to "real" is any physical asset or resource.
Monsanto is evil, but, unlike the banking/financial sector, they cannot fake their inventory or inputs etc.
What the fuck do you have with letting these fuckers "self-destruct!!!"
contradict yourself much? fucking stupid, if the bankers/financiers or monsanto want to commit suicide, let them!!!
The problem with letting them all commit suicide is that they want to take me and you with them, that cool with you?
They wer'nt using the product properly, they were more concerned with bottom line profits, like the robber who makes the perfect robbery, and then forgets where he hid the stash.
Well, leaving the name calling aside, who the F*kk could possibly think that a company that is killing the soil, killing the bees we need to pollinate our biosphere - not just food crops, and cause disease in humans, as well as, presumably, livestock and all other creatures, is an investible company stock? It may exist, but that doesn't make it wise to promote the company or it's stock, unless one enthusiastically believes in Monsanto's contribution to agenda 21.
BTW not just EMs, but europe and former CIS states have outright bans on GMOs, as do some US states and counties, so the idea that it's ok to kill a bunch of foreigners is absurd, this shit is planted in the good ol' USSA and contaminates everything around it, but go ahead, buy more MON cuz it's the right thing to do.
http://www.realnatural.org/many-countries-ban-gmo-crops-require-ge-food-...
http://progressivecynic.files.wordpress.com/2012/11/geke.png?w=600
@LOP,
That REAL product is genocide.
I'm pretty sure mosst of their shit corn, soy, etc is grown in EM countries, getting really bad exchange rates right now. TPP will help that though.
^^^this. Yes, look at the Real or the Peso!
Spot on. Most people (see above) are too fucking stupid to figure this out.
"more than 93% of corn, soy, cotton grown in the USA is now genetically modified"
http://www.vox.com/2014/8/12/5995087/genetically-modified-crops-rise-charts
Haven't you heard? 2,4-Dichlorophenoxyacetic Acid (2,4-D - about half of what makes up Agent Orange) has been approved by our government as safe for food and Monsanto has a bunch of 2,4-D Ready seed all set to go. I imagine some have already been planted and will be showing up in the grocery stores in the not too distant future. No wonder Germany, France and several other countries have exercised their rights to decline to plant the GMO seeds that the EU wanted to force upon them.
Yes, but bad news is goos news right?
LOL! 2% growth in the current "mark to fantasy" world means -8.0% growth in the real world.
What are the liabilites of the U.S.S.A. now?
boomerang effect, finally !
I wonder how many of its employees eat non-GMO / organic food.
2600
Thumbs up; I believe it was 2600 however.
I was fast with the edit button after the brain fart.
Monsatan has bad earnings? Poisoning your customers is not a viable business model?
Dramatic Correlation Shown Between GMOs And 22 Diseaseshttps://www.popularresistance.org/dramatic-correlation-shown-between-gmo...
Ask GE's Reactor Division
total lunacy
Illumina Inc. (ILMN) Has Plunged To A New Low On Disappointing Forecast
http://www.rttnews.com/2561328/illumina-inc-ilmn-has-plunged-to-a-new-low-on-disappointing-forecast.aspx
Where's the money Lebowski?
Hey.....look out.....I'm holding a beverage here man.
It's down there somewhere, let me take another look.
But, but Monsanto selling genetically modified seed to Ukraine will offset all these losses.
"Monsanto" is simply a criminal organisation. It's being worshiped only by cold hearted madmen.
ROFL, they hire and fire all the time. Good chum for the dunning-kruger, scientifically-illiterate, confirmation bias zh set though.
<-Thinks the earf is 6000 years old and that man walked with velociraptors.
Triggering he WARN Act is different than simply churning people.
can we send the ones left to a fema camp?
Hopefully the people let go will appreciate that they are no longer working for one of the most destructive companies on the planet. With glyphosate permeating every part of our existence these days and no chance of sustainable farming as long as Monsanto seeds are used, Monsanto has done more to harm our biosphere and human health than almost anyone.
I am sure their motives were good, however ... profit and bigger bonuses for the executives.
Monsanto is Worse than Goldman (may both ror in hell)!!
Wow tough call ... hmmm.
Expect Monsanto to be a big backer of the continuation of the Export/Import bank so they can see if they can also get in on the corporate welfare that Boeing and GE gets in connection with foreign companies. You know, so they can "SAVE AMERICAN JOBS" and all.
It is roughly the same relationship that the other big ones have. The problem is less demand. Not to mention outright boycotts by entire countries.
They are salivating over Ukraine, Syria etc. The new American colonies are their hail mary pass, or so they think.
Fuck Monsanto. Motto: "Yes, we destroyed the world, but for a brief period there we delivered a great return to our shareholders."
I am no fan of Monsanto, for numerous reasons, but, genetic modification is the reason mankind has been able to feed itself by eating grass
Mechanized farming is what brought the population from 1b to 8b in 100 years.
I am talking 10,000 years
Not many here will have the first clue what you mean by that. (Stewart Brand - Whole Earth Discipline)
Thanks. I broke the cardinal rule. Know your crowd
Heh. Well the OP is in good company then, for he is equating longterm organic crossbreeding with immediate, forced molecular manipulation of a species, and/or splicing of unrelated species.
Gene splicing between flora and fauna, for ecologically unstudied or understudied results, is not the same as growing a bigger potato.
Even a Latvian troll could tell you that.
You are a fan of GMO's apparently, and a Monsanto troll, since you trot out the worthless canard that GMO is equivalent to natural genetic varation selection.
It's one thing to look at a crop of wheat or corn and say,
"Hmm, these stalks have more grain on them, I think I'll save them to plant next year." or even to say, "Hmmm, what would happen if I bred this high yielding corn with this big eared corn?"
and quite another to say:
"Hmm, what if I took theis gene from a bacteria that produces pesticide and spliced it into a corn plant using agrobacterim tumefacien germs or microinjection (biolistic/tungsten micro projectile) techniques, along with chemical DNA cloning techniques, so that I can make a corn plant that produces toxic corn that destroys the gut linings of every creature that eats it?"
It's like comapring a man who jumps out of a building to one flying in an airplane. Yes they are both moving through the air, but the similarity ends there.
Genetic Modification is responsible for lots of disease and health cost increases. One of the devils many programs.
You have just displayed your ignorance of the term "genetic modification". Go sit in the corner and look up the difference between "genetic modification" and "hybridization".
Or not - just eat all the GMO corn and soybeans you can find and die an early death whilst believing there is no difference - your choice.
"Expected separation" - is that what we call it now? At the very least have the balls to tell these folks they are being laid off. Nothing as condescending as politically correct language used to tell you that you lost your job.
If peeple keep getting fired the unemployment rate may hit 3.5%.
It's the "Yes we can!" Legacy!
Round er UP! cowboys & cowgirls
Poor Monsanto shareholders and their poor poor employees. :,(
They just fired the paper pushers so they can hire more lawyers and thugs to extort farmers growing their seeds that lands on their fields.
Lies are awesome!
So that is $3.1M buyback per person they fired.
Better yet, that is $81,000 per person they fired that they have now LOST on that investment.
Come on now...they did not fire 2600 employees..that sounds so harsh..let's put this in perspective....they genetically modified their workforce by weeding out inefficiencies..
Shitty earnings all around and the market is up, up, up!
Stock buybacks signal 1) their products have ceased to delight and amaze thir customers 2) they no longer believe in their own business model, hence the misallocation of capital that should go to CAPEX 3) their c-suite elite have adopted a mafiosi attitude and are essentially LOOTING the company to support their own compensation.
Monsanto is officially now dead man walking-like IBM and McDonald's.
And frankly it couldn't happen to a better company. I cannot think of a single more malignant american corporation than Monsanto. Evil to the core, an ENEMY OF HUMANITY!
ANOTHER VILE HORRIFIC AMERICAN MASTERPIECE IS SLOWLY DYING.
So you are an ignoramus...
Right from the Monsanto website...they seem like such a nice company.
Monsanto is headquartered in St. Louis, Missouri, in the United States, and has locations in multiple locations around the world. The locations are variously administrative and sales offices, manufacturing plants, seed production facilities, research centers, and learning centers – all part of the corporate focus on agriculture and supporting farmers.
By having locations close to our customers, we are better able to experience the needs of those customers, to understand the pressures confronting them and to develop innovations tailored to their needs.
Home Depot Long Term Debt today: 17 billion
Long Term Debt 2005: 2.6 billion
2015 anticipated net profit: 6.75 billion
2005 net profit: 5.838 billion
Years to pay off 2015 debt with 2015 rate of earnings: 2.51 years
Years to pay off 2005 debt with 2005 rate of earnings: 5.4 months
I think that says it all.