Earnings Preview: Monsanto Company (MON)

Monsanto Company MON is currently higher on the session by 0.71%, trading at $48.11. The company is scheduled to report earnings tomorrow, before the opening bell. • Estimates The Street is looking for Q4 earnings per share of $0.01 on revenue of $1.79 billion. These estimates have fallen by $0.07 (-87.5%) over the past 90 days. The Whisper number for MON is $0.01 • Guidance The Street is looking for Q1 EPS of $0.04 on revenue of $1.77 billion. The full year 2010 estimates are $2.49 per share on revenue of $10.52 billion; FY 2011 is at $3.01 per share on revenues of $11.42 billion. • Technical Picture MON has been falling for the past two and a half years after hitting a high of $146.00 in June of 2008. On a nearer-term basis, the chart is equally weak, showing nothing but a downtrend. If MON cannot hold $44.76, shares seem primed to head lower still. • Volatility Both historical volatility and implied volatility have been up-trending over the past year, with implied vol registering a new 52-week high this month. Currently HI is at 37% and IV is at 47%. The front month $47.50 straddle is trading at 52.89%; the November $47.50 straddle is trading at 42.47%. Vol is skewed to the puts in both months, go figure. Monsanto Company, along with its subsidiaries, is a worldwide provider of agricultural products for farmers. The company's seeds, biotechnology trait products, and herbicides provide farmers with solutions to produce foods for consumers and feed for animals. The company operates in two segments: Seeds and Genomics, and Agricultural Productivity. In December 2008, the company acquired 100% interest of Aly Participacoes Ltda., which operates the sugarcane breeding and technology companies, CanaVialis S.A. and Alellyx S.A., both of which are based in Brazil. In July 2009, the company acquired the WestBred, LLC, a Montana-based company that specializes in wheat germplasm.