The Mosaic Company (MOS - Free Report) logged profits of $1,182 million or $3.19 per share in first-quarter 2022, up from $156.7 million or 41 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share were $2.41, missing the Zacks Consensus Estimate of $2.44.
Net sales rose roughly 71% year over year to $3,922.3 million in the quarter. The figure missed the Zacks Consensus Estimate of $4,106.3 million. Sales were driven by gains in all segments and higher year-over-year prices.
Segment Highlights
Net sales in the Potash segment rose to around $1.06 billion in the reported quarter, from $477 million in the prior year quarter. The upside was driven by higher prices, partly offset by reduced volumes. Sales volumes in the segment declined to 1.8 million tons from 2 million tons in the year-ago quarter. The segment’s gross margin per ton increased to $323 from $71 in the year-ago quarter.
The Phosphate division’s net sales climbed around 50% year over year to $1.5 billion in first-quarter 2022, driven by higher prices. Sales volumes in the segment fell 19% year over year in the quarter. Gross margin per ton in the quarter was $318, up from $84 in the year-ago quarter.
Net sales in the Mosaic Fertilizantes segment were around $1.49 billion in the quarter, up around 95.3% year over year, driven by higher year-over-year prices. Sales volume in the quarter declined to 1.8 million tons from 2.1 million tons. The gross margin per ton in the quarter was $120, up around 140% year over year.
Financials
At the end of the quarter, Mosaic had cash and cash equivalents of $881.9 million, up from $769.5 million in the previous quarter. Long-term debt declined to $3,377.6 million from $3,382.2 million in the prior quarter.
Net cash provided by operating activities increased roughly 58.8% year over year to $506.2 million in the reported quarter.
Outlook
Moving ahead, the company noted that it expects higher annual production across its global platform in both potash and phosphates, led by the completed ramp-up of Esterhazy K3, a higher run-rate at Colonsay and recovery of phosphate output from its North American operations. It takes responsibility for helping the world grow the food it needs and is working to mitigate some of the impact of lower global supply by efficiently boosting output, the company noted.
The company forecasts total capital expenditures of $1.3 billion for full-year 2022. It projects selling, general and administrative expenses in the range of $400-$420 million.
Mosaic expects Phosphate segment sales volumes of 1.9-2.1 million tons and Potash sales volumes of 2.4-2.6 million tons for the second quarter. For phosphates, DAP prices on a FOB basis for the second quarter are expected to be $140-$160 per ton higher on a sequential comparison basis. For potash, MOP prices on a FOB basis are expected to be $40-$60 per ton higher sequentially.
Price Performance
Shares of Mosaic have increased 76.3% in the past year compared with a 51.7% rise of the industry.
Zacks Rank & Other Key Picks
Mosaic currently sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks in the basic materials space are Nutrien Ltd. (NTR - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .
Nutrien has a projected earnings growth rate of 127.9% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 31.1% upward in the past 60 days.
Nutrien’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing once. It delivered a trailing four-quarter earnings surprise of roughly 5.9%, on average. NTR has rallied around 70% in a year and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 54.7% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 43.6% upward in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 40.7% in a year. The company carries a Zacks Rank #1.
Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 707.7% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 6.1% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 15.4% over a year.
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The Mosaic Company (MOS - Free Report) logged profits of $1,182 million or $3.19 per share in first-quarter 2022, up from $156.7 million or 41 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share were $2.41, missing the Zacks Consensus Estimate of $2.44.
Net sales rose roughly 71% year over year to $3,922.3 million in the quarter. The figure missed the Zacks Consensus Estimate of $4,106.3 million. Sales were driven by gains in all segments and higher year-over-year prices.
Segment Highlights
Net sales in the Potash segment rose to around $1.06 billion in the reported quarter, from $477 million in the prior year quarter. The upside was driven by higher prices, partly offset by reduced volumes. Sales volumes in the segment declined to 1.8 million tons from 2 million tons in the year-ago quarter. The segment’s gross margin per ton increased to $323 from $71 in the year-ago quarter.
The Phosphate division’s net sales climbed around 50% year over year to $1.5 billion in first-quarter 2022, driven by higher prices. Sales volumes in the segment fell 19% year over year in the quarter. Gross margin per ton in the quarter was $318, up from $84 in the year-ago quarter.
Net sales in the Mosaic Fertilizantes segment were around $1.49 billion in the quarter, up around 95.3% year over year, driven by higher year-over-year prices. Sales volume in the quarter declined to 1.8 million tons from 2.1 million tons. The gross margin per ton in the quarter was $120, up around 140% year over year.
Financials
At the end of the quarter, Mosaic had cash and cash equivalents of $881.9 million, up from $769.5 million in the previous quarter. Long-term debt declined to $3,377.6 million from $3,382.2 million in the prior quarter.
Net cash provided by operating activities increased roughly 58.8% year over year to $506.2 million in the reported quarter.
Outlook
Moving ahead, the company noted that it expects higher annual production across its global platform in both potash and phosphates, led by the completed ramp-up of Esterhazy K3, a higher run-rate at Colonsay and recovery of phosphate output from its North American operations. It takes responsibility for helping the world grow the food it needs and is working to mitigate some of the impact of lower global supply by efficiently boosting output, the company noted.
The company forecasts total capital expenditures of $1.3 billion for full-year 2022. It projects selling, general and administrative expenses in the range of $400-$420 million.
Mosaic expects Phosphate segment sales volumes of 1.9-2.1 million tons and Potash sales volumes of 2.4-2.6 million tons for the second quarter. For phosphates, DAP prices on a FOB basis for the second quarter are expected to be $140-$160 per ton higher on a sequential comparison basis. For potash, MOP prices on a FOB basis are expected to be $40-$60 per ton higher sequentially.
Price Performance
Shares of Mosaic have increased 76.3% in the past year compared with a 51.7% rise of the industry.
Zacks Rank & Other Key Picks
Mosaic currently sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks in the basic materials space are Nutrien Ltd. (NTR - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Allegheny Technologies Incorporated (ATI - Free Report) .
Nutrien has a projected earnings growth rate of 127.9% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 31.1% upward in the past 60 days.
Nutrien’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing once. It delivered a trailing four-quarter earnings surprise of roughly 5.9%, on average. NTR has rallied around 70% in a year and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 54.7% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 43.6% upward in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 40.7% in a year. The company carries a Zacks Rank #1.
Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 707.7% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 6.1% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 15.4% over a year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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