Earnings Roundup: Monsanto, AutoZone, and Dollar Tree

Dollar Tree's (NASDAQ:DLTR) profit spiked 39% and shares hit a new 52-week high, AutoZone (NYSE:AZO) earnings were overlooked by the General Motors (NYSE:GM) drama, and Monsanto Company (NYSE:MON) cut their Q3 guidance.  Let's get to it.

Here's how those companies' shares performed today:

Name	Symbol	Last price	Change	Mkt cap	Volume	Open	High	Low
Dollar Tree, Inc.	DLTR	45.30	+0.90 (2.03%)	4.09B	4.47M	44.52	46.735	44.11
AutoZone, Inc.	AZO	155.04	-7.80 (-4.79%)	8.48B	3.58M	159.92	161.32	153.49
Monsanto Company	MON	79.88	-5.37 (-6.30%)	43.59B	21.76M	82.005	82.86	79.67

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Monsanto (NYSE:MON)
Monsanto Co. (MON) said today they expect to meet the low end of their fiscal 2009 earnings guidance range. Previously, Monsanto forecast ongoing earnings between $4.40 per share and $4.50 per share. It now expects earnings to be about $4.40 per share for the fiscal year ending in August.

Analysts polled by Thomson Reuters, on average, forecast earnings of $4.58 per share for the fiscal year. Monsanto said its projected results would still put the company in line to grow 20 percent for the fifth straight year.

Monsanto said it expects its seeds and traits segment to report gross profit toward the higher end of its projected range of $4.4 billion to $4.5 billion amid strong farmer demand for higher yielding seeds and trait technologies. Monsanto cut its forecast for gross profit at its Roundup and glyphosate business to $2 billion from a previous forecast of $2.4 billion. The reduced expectations are tied to cooler, wetter weather in parts of the U.S. delaying the use of Roundup and other herbicide products. Competition also has put a dent in sales volume, Monsanto said.

Because of a slowdown in the Roundup business, Monsanto said it expects fiscal third-quarter earnings of $1.15 per share. Analysts expect third-quarter earnings of $1.56 per share.

Continued strong performance from the seeds and traits segment and a reduction in spending on marketing, administrative functions and incentives will help offset the decline in gross profit from the Roundup business, Monsanto said.

Dollar Tree (NASDAQ:DLTR)
Dollar Tree est and tgt raised to $47 at Wedbush Morgan following strong Q1 results Wedbush Morgan raises their Q2 EPS est to $0.48 from $0.46 (consensus $0.46) and their FY09 EPS to $2.92 from $2.78 (consensus $2.85) following the co's strong Q1 results. The firm also raises their tgt to $47 from $42. The firm notes that DLTR has proven to be an excellent safe haven during recent challenging times and provided strong returns by successfully adopting strategies to increase their mix of consumables, which has resulted in increased traffic, positive comps, and earnings growth. However, beginning in Q2, the firm believes that DLTR will face tougher comparisons, which should result in a necessary slowing of comp and earnings momentum, and potentially multiple compression as well. As such, the firm believes shares are near fair value, but the firm remains confident that the co will continue to execute its top-line driving strategies, which should help offset the current negative headwinds, as well as operating margin initiatives.

AutoZone (NYSE:AZO)

The Memphis-headquartered company reported earnings of $3.13 for the quarter ended May 9, up from $2.51 a share during the same time period last year. Wall Street analysts on average expected earnings of $2.58 a share. Lower gas prices helped encourage do-it-yourself mechanics to step up repairs and tinkering, pushing revenue to $1.7 billion. Domestic same-store sales rose 7.4%.

President and CEO Bill Rhodes said Wednesday that AutoZone fills a niche that grows during tough times, and that "we believe our business is not inherently cyclical in nature" and that both individual and commercial customers were able to step up maintenance as gas prices declined.

Oppenheimer & Co. analyst Brian Nagel initiated coverage of the stock on Tuesday with a Perform rating, saying the stock still has some upside potential, but also should be looked at carefully. "We believe trends in the Aftermarket Automotive Retail sector are likely to slow later this year," he wrote. "Our cautious views on the sector are predicated on rising gasoline prices (+40% since December 29), the potential for new car sales to pick up, and concerns about the potential negative impact on the existing base of used cars from passage of the 'cash for clunker' legislation," which would cut parts purchases.