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Mosaic (MOS) Misses Q1 Earnings & Sales Estimates

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The Mosaic Company (MOS - Free Report) is a leading producer and marketer of concentrated phosphate and potash for the global agriculture industry. It is the largest producer of finished phosphate products globally.

Mosaic remains committed to expand its annual potash production capacity. The company is expected to gain from acquisitions and its cost cutting initiatives. However, the company is facing challenges from a weak pricing environment.  

Let’s have a quick look at this fertilizer company’s first-quarter release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for Mosaic for the first quarter has seen a downtrend over the past month. Mosaic has beaten the Zacks Consensus Estimate in 2 of the trailing 4 quarters while missed once and reported in line on the other occasion, delivering an average positive surprise of 62.50%.

Earnings

Mosaic’s adjusted earnings were 4 cents per share for the quarter, missing the Zacks Consensus Estimate of 19 cents.

Mosaic Company (The) Price and EPS Surprise

 

Mosaic Company (The) Price and EPS Surprise | Mosaic Company (The) Quote

Revenues

Mosaic recorded net sales of $1,578.1 million, down roughly 5.7% year over year. That also missed the Zacks Consensus Estimate of $1,672 million.

Key Stats/Developments to Note

Mosaic expects phosphates sales volumes in the band of 2.3 million to 2.6 million tons for the second quarter of 2017 versus 2.4 million tons for the same quarter in 2016. Potash sales volumes have been forecast in the range of 2 million to 2.3 million tons for the second quarter, compared with 2 million tons in the prior year quarter. Total sales volumes for the International Distribution unit are expected to be in the band of 1.4 to 1.7 million tons for the second quarter, compared with 1.4 million tons for the same quarter in 2016.

Zacks Rank

Mosaic currently has a Zacks Rank #3 (Hold), but that could change following its earnings report which was just released.

Market Reaction

Mosaic’s shares were down 1.9% in the pre-market trading following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on Mosaic’s earnings report!

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