Bayer Earnings: Glyphosate Pricing Weighs on Results, but Long-Term Outlook Remains Unchanged

Bayer reported first-quarter results with falling glyphosate pricing weighing on core earnings per share (down 16%). While we had largely already factored this into our long-term outlook and don’t expect any major fair value estimate changes, the headwinds are likely contributing to pressure on the stock. With increased production of lower-priced competitive glyphosate returning to the market, we expect 2023 to represent a more normalized base year for Bayer’s glyphosate-based herbicides (down 50% in the quarter).