Monsanto released its first quarter financial results on Wednesday morning. Here’s what the results mean for mutual fund investors.
Earnings
The company reported earnings of $243 million, or 47 cents per share, down from $368 million, or 67 cents per share, a year ago. On average, analysts expected to see EPS of 35 cents.
Revenue
Revenue came in at $2.87 billion, down from $3.14 billion last year. Analysts expected to see revenue of $2.8 billion.
Outlook
The company expects to see EPS between $5.78 and $6.03. The company expects to see a 5%-10% decline in EPS due to lower U.S. corn acres.
Firing on All Cylinders
Overall, Monsanto had a positive first quarter report. The company’s soy bean business grew revenue by 48%, which is a very impressive growth rate. We see MON as a great brand, but are concerned with its growing competition and its exposure to foreign currencies.
Mutual Funds to Watch
Investors seeking exposure to Monsanto may also consider a mutual fund investment as an alternative to investing directly in the stock. The funds below currently have the largest stakes in the company.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| VTSMX | Vanguard Total Stock Market Index | 1.80% |
| VPMCX | Vanguard PRIMECAP | 1.30% |
| VFINX | Vanguard 500 Index | 1.14% |
The Bottom Line
The funds above offer investors a diverse group of holdings. Investors interested in Monsanto may also be interested in Du Pont (DD) and Dow Chemical (DOW).