Monsanto's stock drops after profit outlook cut
Monsanto Co.'s stock dropped 4.9% in premarket trade Wednesday, after the agricultural products company slashed its full-year profit outlook, citing a deteriorating macro environment. The company now expects adjusted per-share earnings for the fiscal year ending in August in the range of $4.40 to $5.10, down from a previous outlook of $5.10 to $5.60, according to FactSet. Monsanto cut its full-year free cash flow guidance range to $1.4 billion to $1.6 billion from $1.6 billion to $1.8 billion. The company said weak foreign currencies and lower commodities prices, which led to weak generic glyphosate pricing and compressed grower margins, were among the "several variables" creating headwinds to its business. "Today, the macro-environment is proving to be even more challenging, yet we still see strong long-term growth opportunities for our business," said Chief Financial Officer Pierre Courduroux. The stock had tumbled 24% over the past year, while the S&P 500 has lost 6.6%.
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