We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Mosaic's (MOS) Q2 Earnings and Revenues Miss Estimates
Read MoreHide Full Article
The Mosaic Company (MOS - Free Report) reported a net loss of $161.5 million or 50 cents per share in the second quarter of 2024. This marks a deterioration from a profit of $369 million or $1.11 per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 54 cents, lagging the Zacks Consensus Estimate of 68 cents.
Net sales declined nearly 17% year over year to $2,816.6 million in the quarter. The metric lagged the Zacks Consensus Estimate of $2,930.8 million.
The Mosaic Company Price, Consensus and EPS Surprise
Net sales in the Potash segment were $663 million in the reported quarter, down around 22% from $849 million in the prior-year quarter. Sales volume totaled 2.3 million tons, up 4.5% year over year. The figure is higher than our estimate of 2.26 million tons. The segment’s gross margin declined to $79 per ton from $155 per ton in the year-ago quarter. The average MOP selling price fell to $224 per ton from $326 per ton a year ago.
The Phosphate division’s net sales were $1.2 billion, down from $1.3 billion in the prior-year period. Sales volume in the segment totaled 1.7 million tons, down from 1.9 million tons last year. The figure matched our estimate of 1.7 million tons. The gross margin in the quarter was $91 per ton, down from $112 per ton in the year-ago quarter. The average DAP selling price declined to $575 per ton from $585 per ton a year ago.
Net sales in the Mosaic Fertilizantes segment were $1 billion in the quarter, down about 28.5% year over year. Sales volume in the quarter fell 8% to 2.2 million tons. The figure was lower than our estimate of 2.45 million tons. The gross margin in the quarter was $46 per ton, up from $5 per ton in the prior-year quarter.
Financials
At the end of the quarter, Mosaic had cash and cash equivalents of $322 million, down 48.5% year over year. Long-term debt was $3,194.4 million, up 32% year over year.
Net cash provided by operating activities was $847 million in the reported quarter.
Outlook
In 2024, grains and oilseeds stock-to-use ratios are expected to remain low, creating a constructive environment for agriculture fundamentals and economics, per MOS. This is likely to encourage growers to maximize their yields. The El Nino weather pattern is anticipated to transition to La Nina, benefiting agriculture in Southeast Asia, India and Brazil. Although the fundamentals and prices of corn and soybeans have softened recently, affordable nutrient prices are favorable for fertilizer demand.
North American demand remains robust, with buyers replenishing supplies after depleting their bins this spring and Brazil's in-season demand is strong due to concerns about low stocks. Global potash supply constraints are expected to ease this year with increased exports from Belarus and Russia. Recent contract settlements in China and India are expected to further stimulate buying activities in Southeast Asia and India.
Chinese phosphate exports declined by 27% or more than 1 million tons, year over year in the first six months of 2024. The long-term outlook remains favorable as China is likely to continue prioritizing domestic and industrial needs over fertilizer exports. These factors indicate that the global potash market is balanced, while the phosphate market is expected to remain tight in 2024 and beyond, MOS noted.
The company projects total capital expenditures for 2024 in the band of $1.1-$1.2 billion.
Price Performance
Mosaic’s shares have lost 35.4% in the past year compared with a 30.8% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Mosaic currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Franco-Nevada Corporation (FNV - Free Report) , Avino Silver & Gold Mines Ltd. (ASM - Free Report) and Barrick Gold Corporation (GOLD - Free Report) . Franco-Nevada and Avino Silversport a Zacks Rank #1 (Strong Buy), while Barrick carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FNV’s current-year earnings is pegged at $3.27. The consensus estimate for FNV’s earnings has increased by 3% in the past 60 days. FNV beat the consensus estimate in the last four quarters, with the average earnings surprise being 10.5%. It is scheduled to release second-quarter results on Aug 13.
The Zacks Consensus Estimate for ASM’s current-year earnings is pegged at 5 cents, indicating a year-over-year rise of 25%. The consensus estimate for ASM’s earnings has increased by 25% in the past 60 days. The company’s shares have increased 32.4% in the past year. It is slated to report second-quarter results on Aug 13.
The Zacks Consensus Estimate for Barrick's current-year earnings is pegged at $1.16, indicating a rise of 38.1% from year-ago levels. The consensus estimate for GOLD’s earnings has increased 9% in the past 60 days. The company’s shares have increased 5.4% in the past year. GOLD will release second-quarter results on Aug 12.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Mosaic's (MOS) Q2 Earnings and Revenues Miss Estimates
The Mosaic Company (MOS - Free Report) reported a net loss of $161.5 million or 50 cents per share in the second quarter of 2024. This marks a deterioration from a profit of $369 million or $1.11 per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 54 cents, lagging the Zacks Consensus Estimate of 68 cents.
Net sales declined nearly 17% year over year to $2,816.6 million in the quarter. The metric lagged the Zacks Consensus Estimate of $2,930.8 million.
The Mosaic Company Price, Consensus and EPS Surprise
The Mosaic Company price-consensus-eps-surprise-chart | The Mosaic Company Quote
Segment Highlights
Net sales in the Potash segment were $663 million in the reported quarter, down around 22% from $849 million in the prior-year quarter. Sales volume totaled 2.3 million tons, up 4.5% year over year. The figure is higher than our estimate of 2.26 million tons. The segment’s gross margin declined to $79 per ton from $155 per ton in the year-ago quarter. The average MOP selling price fell to $224 per ton from $326 per ton a year ago.
The Phosphate division’s net sales were $1.2 billion, down from $1.3 billion in the prior-year period. Sales volume in the segment totaled 1.7 million tons, down from 1.9 million tons last year. The figure matched our estimate of 1.7 million tons. The gross margin in the quarter was $91 per ton, down from $112 per ton in the year-ago quarter. The average DAP selling price declined to $575 per ton from $585 per ton a year ago.
Net sales in the Mosaic Fertilizantes segment were $1 billion in the quarter, down about 28.5% year over year. Sales volume in the quarter fell 8% to 2.2 million tons. The figure was lower than our estimate of 2.45 million tons. The gross margin in the quarter was $46 per ton, up from $5 per ton in the prior-year quarter.
Financials
At the end of the quarter, Mosaic had cash and cash equivalents of $322 million, down 48.5% year over year. Long-term debt was $3,194.4 million, up 32% year over year.
Net cash provided by operating activities was $847 million in the reported quarter.
Outlook
In 2024, grains and oilseeds stock-to-use ratios are expected to remain low, creating a constructive environment for agriculture fundamentals and economics, per MOS. This is likely to encourage growers to maximize their yields. The El Nino weather pattern is anticipated to transition to La Nina, benefiting agriculture in Southeast Asia, India and Brazil. Although the fundamentals and prices of corn and soybeans have softened recently, affordable nutrient prices are favorable for fertilizer demand.
North American demand remains robust, with buyers replenishing supplies after depleting their bins this spring and Brazil's in-season demand is strong due to concerns about low stocks. Global potash supply constraints are expected to ease this year with increased exports from Belarus and Russia. Recent contract settlements in China and India are expected to further stimulate buying activities in Southeast Asia and India.
Chinese phosphate exports declined by 27% or more than 1 million tons, year over year in the first six months of 2024. The long-term outlook remains favorable as China is likely to continue prioritizing domestic and industrial needs over fertilizer exports. These factors indicate that the global potash market is balanced, while the phosphate market is expected to remain tight in 2024 and beyond, MOS noted.
The company projects total capital expenditures for 2024 in the band of $1.1-$1.2 billion.
Price Performance
Mosaic’s shares have lost 35.4% in the past year compared with a 30.8% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Mosaic currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Franco-Nevada Corporation (FNV - Free Report) , Avino Silver & Gold Mines Ltd. (ASM - Free Report) and Barrick Gold Corporation (GOLD - Free Report) . Franco-Nevada and Avino Silversport a Zacks Rank #1 (Strong Buy), while Barrick carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FNV’s current-year earnings is pegged at $3.27. The consensus estimate for FNV’s earnings has increased by 3% in the past 60 days. FNV beat the consensus estimate in the last four quarters, with the average earnings surprise being 10.5%. It is scheduled to release second-quarter results on Aug 13.
The Zacks Consensus Estimate for ASM’s current-year earnings is pegged at 5 cents, indicating a year-over-year rise of 25%. The consensus estimate for ASM’s earnings has increased by 25% in the past 60 days. The company’s shares have increased 32.4% in the past year. It is slated to report second-quarter results on Aug 13.
The Zacks Consensus Estimate for Barrick's current-year earnings is pegged at $1.16, indicating a rise of 38.1% from year-ago levels. The consensus estimate for GOLD’s earnings has increased 9% in the past 60 days. The company’s shares have increased 5.4% in the past year. GOLD will release second-quarter results on Aug 12.