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Mosaic (MOS) to Report Q2 Earnings: What's in the Offing?

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The Mosaic Company (MOS - Free Report) is set to release second-quarter 2021 results on Aug 2, after the closing bell. Its second-quarter results are likely to reflect the benefits of higher prices and demand for phosphate and potash.

The fertilizer maker delivered an earnings surprise of 132.8%, on average, over the trailing four quarters. It posted an earnings surprise of 14% in the last reported quarter.
 
Shares of Mosaic have rallied 118.1% in the past year compared with 61.5% rise of the industry.

 

Zacks Investment Research
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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 +2.23%. The Zacks Consensus Estimate for earnings for the second quarter is currently pegged at $1.01. 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 $2,928 million, which calls for an increase of 43.2% from the year-ago quarter’s tally.

The Zacks Consensus Estimate for net sales in the Phosphates segment is currently pegged at $1,189 million, which calls for an increase of 55.8% year over year.

Moreover, the consensus mark for net sales in the Potash segment is currently pinned at $664 million, which suggests an increase of 19.6% year over year.

The Zacks Consensus Estimate for net sales in the Mosaic Fertilizantes segment is currently pegged at $1,230 million, which calls for a rise of 56.3% year over year.

Some Factors at Play

Mosaic is expected to have benefited from higher demand across its markets and increased prices in the second quarter. It is likely to have gained from higher sales volumes in Phosphates and Potash units in the quarter.

The company, in its first-quarter call, said that it expects to realize a roughly $80-$90 per ton improvement in realized prices in Phosphates on a sequential comparison basis in the second quarter. Moreover, it expects to achieve a $20-$30 per ton sequential increase in average realized prices in Potash in the second quarter.

Higher crop commodity prices and healthy farm economics are driving demand for fertilizers globally. Global phosphate markets remain robust on solid demand and pricing dynamics. Tight availability along with firm demand is driving up phosphate prices globally. Potash prices have also strengthened on the back of robust global demand, aided by strong grower economics, higher crop prices and low global inventory levels.

The company’s actions to improve its operating cost structure through transformation plans are also expected to have aided its profitability in the to-be-reported quarter. Transformational savings are also likely to have supported margins in the Mosaic Fertilizantes segment.

 

The Mosaic Company Price and EPS Surprise

 

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 they too have the right combination of elements to post an earnings beat this quarter:

LyondellBasell Industries N.V. (LYB - Free Report) , scheduled to release earnings on Jul 30, has an Earnings ESP of +6.99% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Westlake Chemical Corporation (WLK - Free Report) scheduled to release earnings on Aug 3, has an Earnings ESP of +1.50% and carries a Zacks Rank #1.

Eastman Chemical Company (EMN - Free Report) , scheduled to release earnings on Aug 2, has an Earnings ESP of +0.90% and carries a Zacks Rank #3.