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Mosaic (MOS) to Report Q2 Earnings: What's in the Cards?
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The Mosaic Company (MOS - Free Report) is set to release second-quarter 2022 results on Aug 1, after the closing bell. Mosaic’s second-quarter performance will likely reflect the benefits of higher demand and prices of fertilizers and transformational savings.
Mosaic registered a negative earnings surprise of 0.1%, on average, over the trailing four quarters. It reported a negative earnings surprise of 1.2% in the last reported quarter.
Shares of Mosaic have gained 64.2% in the past year compared with a 44.8% rise of the industry.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
Zacks Model
Our proven model predicts an earnings beat for Mosaic this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Earnings ESP: Earnings ESP for Mosaic is +7.09%. The Zacks Consensus Estimate for earnings for the second quarter is currently pegged at $3.93. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Mosaic currently carries a Zacks Rank #3.
What do the Estimates Indicate?
The Zacks Consensus Estimate for Mosaic’s second-quarter consolidated sales is currently pegged at $5,615.9 million, calling for a surge of 100.4% from the year-ago quarter’s tally.
The Zacks Consensus Estimate for net sales in the Phosphates segment is currently pegged at $1,863 million, suggesting an increase of 58.6% year over year.
Moreover, the consensus mark for net sales in the Potash segment is currently pegged at $1,649 million, indicating an increase of 148.7% year over year.
The Zacks Consensus Estimate for net sales in the Mosaic Fertilizantes segment is currently pegged at $2,351 million, which calls for an increase of 126.9% year over year.
Factors at Play
Mosaic is likely to have benefited from higher demand for phosphate and potash in the second quarter. Higher agricultural commodity prices and attractive farm economics are driving demand for fertilizers globally. Global phosphate markets remain robust on solid demand, low producer and channel inventories. Demand for grains and oilseeds remains high along with strong farm economics. Strong demand, low inventories and supply disruptions have also fueled rapid price increases for fertilizers in the United States and globally.
Mosaic is also likely to have benefited from actions to reduce costs amid a still-challenging operating environment. Its actions to improve its operating cost structure through transformation plans are expected to have boosted its profitability. Transformational savings are also likely to have supported margins.
However, it is likely to have faced headwinds due to an uptick in key raw material prices. Prices of sulfur and ammonia remain elevated, exacerbated by the uncertainties over the supply from Russia amid the war. Plant shutdowns and maintenance have also led to a tight supply of raw materials, which, coupled with strong demand, has ramped up their prices.
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
The Zacks Consensus Estimate for Albemarle’s second-quarter earnings has been revised 21.5% upward in the past 60 days. The consensus estimate for ALB’s earnings for the quarter is currently pegged at $2.94.
Cabot Corporation (CBT - Free Report) , slated to release earnings on Aug 8, has an Earnings ESP of +0.16% and sports a Zacks Rank #1.
The consensus estimate for Cabot’s fiscal third-quarter earnings has been revised 1% upward in the past 60 days. The Zacks Consensus Estimate for CBT’s earnings for the quarter is pegged at $1.53.
Air Products and Chemicals, Inc. (APD - Free Report) , slated to release earnings on Aug 4, has an Earnings ESP of +0.29% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for Air Products’ fiscal third-quarter earnings has been stable over the past 60 days. The consensus estimate for APD’s earnings for the quarter stands at $2.61.
Image: Bigstock
Mosaic (MOS) to Report Q2 Earnings: What's in the Cards?
The Mosaic Company (MOS - Free Report) is set to release second-quarter 2022 results on Aug 1, after the closing bell. Mosaic’s second-quarter performance will likely reflect the benefits of higher demand and prices of fertilizers and transformational savings.
Mosaic registered a negative earnings surprise of 0.1%, on average, over the trailing four quarters. It reported a negative earnings surprise of 1.2% in the last reported quarter.
Shares of Mosaic have gained 64.2% in the past year compared with a 44.8% rise of the industry.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
Zacks Model
Our proven model predicts an earnings beat for Mosaic this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Earnings ESP: Earnings ESP for Mosaic is +7.09%. The Zacks Consensus Estimate for earnings for the second quarter is currently pegged at $3.93. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Mosaic currently carries a Zacks Rank #3.
What do the Estimates Indicate?
The Zacks Consensus Estimate for Mosaic’s second-quarter consolidated sales is currently pegged at $5,615.9 million, calling for a surge of 100.4% from the year-ago quarter’s tally.
The Zacks Consensus Estimate for net sales in the Phosphates segment is currently pegged at $1,863 million, suggesting an increase of 58.6% year over year.
Moreover, the consensus mark for net sales in the Potash segment is currently pegged at $1,649 million, indicating an increase of 148.7% year over year.
The Zacks Consensus Estimate for net sales in the Mosaic Fertilizantes segment is currently pegged at $2,351 million, which calls for an increase of 126.9% year over year.
Factors at Play
Mosaic is likely to have benefited from higher demand for phosphate and potash in the second quarter. Higher agricultural commodity prices and attractive farm economics are driving demand for fertilizers globally. Global phosphate markets remain robust on solid demand, low producer and channel inventories. Demand for grains and oilseeds remains high along with strong farm economics. Strong demand, low inventories and supply disruptions have also fueled rapid price increases for fertilizers in the United States and globally.
Mosaic is also likely to have benefited from actions to reduce costs amid a still-challenging operating environment. Its actions to improve its operating cost structure through transformation plans are expected to have boosted its profitability. Transformational savings are also likely to have supported margins.
However, it is likely to have faced headwinds due to an uptick in key raw material prices. Prices of sulfur and ammonia remain elevated, exacerbated by the uncertainties over the supply from Russia amid the war. Plant shutdowns and maintenance have also led to a tight supply of raw materials, which, coupled with strong demand, has ramped up their prices.
The Mosaic Company Price and EPS Surprise
The Mosaic Company price-eps-surprise | The Mosaic Company Quote
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider, as our model shows these have the right combination of elements to post an earnings beat this quarter:
Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Aug 3, has an Earnings ESP of +11.9% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Albemarle’s second-quarter earnings has been revised 21.5% upward in the past 60 days. The consensus estimate for ALB’s earnings for the quarter is currently pegged at $2.94.
Cabot Corporation (CBT - Free Report) , slated to release earnings on Aug 8, has an Earnings ESP of +0.16% and sports a Zacks Rank #1.
The consensus estimate for Cabot’s fiscal third-quarter earnings has been revised 1% upward in the past 60 days. The Zacks Consensus Estimate for CBT’s earnings for the quarter is pegged at $1.53.
Air Products and Chemicals, Inc. (APD - Free Report) , slated to release earnings on Aug 4, has an Earnings ESP of +0.29% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for Air Products’ fiscal third-quarter earnings has been stable over the past 60 days. The consensus estimate for APD’s earnings for the quarter stands at $2.61.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.