Monsanto Falls 4% Following Downward Revision To 2016 Guidance

Shares of Monsanto Company (NYSE: MON) were trading lower by more than 4 percent Wednesday morning after the company revised its 2016 guidance.

Monsanto lowered its full year fiscal 2016 earnings per share guidance from a prior range of $4.40 to $5.10 to a new range of $3.42 to $4.29 per share. The company cited several variables that are creating "significant headwinds" such as foreign exchange rates, generic glyphosate pricing and grower margins coming from lower commodity prices.

The company expanded that foreign currency accounts for $0.25 to $0.30 of the reduction in its 2016 earnings guidance and another $0.30 stemming from its Seeds and Genomics businesses as a result of various macro factors, including the delay in the EPA approval of dicamba for in-crop use in the Roundup Ready Xtend system and industry discounting.

Monsanto also guided its second quarter earnings per share to $2.15 to $2.35.

"Today, the macro-environment is proving to be even more challenging, yet we still see strong long-term growth opportunities for our business," said Pierre Courduroux, senior vice president and chief financial officer. "Monsanto's business fundamentals remain solid and we are positioned well to continue to deliver best-in-class innovations within the industry's leading integrated pipeline and through continued proven product performance. This position of strength within our industry is expected to enable us to continue to bring significant value to our customers and shareowners in the years ahead."