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Mosaic's (MOS) Q4 Earnings Meet, Revenues Beat Estimates

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The Mosaic Company (MOS - Free Report) logged profits of $665 million or $1.76 per share in fourth-quarter 2021 compared with $828 million or $2.17 in the year-ago quarter.

Barring one-time items, adjusted earnings per share were $1.95, in-line with the Zacks Consensus Estimate.

Net sales rose roughly 56.3% year over year to $3,841 million in the quarter. The figure topped the Zacks Consensus Estimate of $3,810.6 million. Sales were driven by gains in all segments and higher year-over-year prices.

The Mosaic Company Price, Consensus and EPS Surprise

 

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 Phosphates segment rose roughly 48% year over year to around $1.5 billion in the reported quarter, driven by higher prices. Sales volumes in the segment declined 21.7% year over year in the quarter. The segment’s gross margin per ton improved to $254 from $73 in the year-ago quarter.

Potash division’s net sales climbed around 60% year over year to $897 million in 2021 driven by higher prices. Sales volumes in the segment fell 22.2% year over year in the quarter. Gross margin per ton in the quarter was $224, up around 397.7% year over year.

Net sales in the Mosaic Fertilizantes segment were around $1.5 billion in 2021, up around 87% year over year driven by higher year-over-year prices. Sales volume in the quarter remained constant year over year at 2.3 million tons. Gross margin per ton in the quarter was $95, up around 196.8% year over year.

FY21 Results

Earnings (as reported) for full-year 2021 were $4.27 per share compared with $1.75 per share a year ago. Net sales rose 42.3% year over year to around $12,357.4 million.

Financials

At the end of the quarter, Mosaic had cash and cash equivalents of $769.5 million, up around 34% year over year. Long-term debt fell roughly 17% year over year to $3,382 million.

Net cash provided by operating activities increased roughly 80.5% year over year to $430.4 million in the reported quarter.

Outlook

Moving ahead, the company noted that it expects strong agricultural commodity pricing trends to continue driving demand for fertilizers through 2022.

Phosphate demand is forecast to remain strong globally. China's domestic phosphate industry is undergoing significant change as production is diverted from export markets toward domestic industrial and agricultural demand. For potash and phosphates, supply chain constraints and impacts related to the pandemic are hurting the global market, Mosaic noted.

The company forecasts total capital expenditures of $1.1 billion for full-year 2022.

Price Performance

Shares of Mosaic have increased 37.5% in the past year compared with a 21.9% rise of the industry.

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Zacks Rank & Other Key Picks

Mosaic currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are Allegheny Technologies (ATI - Free Report) , Nutrien Ltd. (NTR - Free Report) and AdvanSix Inc. (ASIX - Free Report) .

Allegheny, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 584.6% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 30.9% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Allegheny beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 127.2%. ATI has gained around 10.4% over a year.

Nutrien, sporting a Zacks Rank #1, has a projected earnings growth rate of 59.4% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 12.5% upward in the past 60 days.

Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 60.3%, on average. NTR has rallied around 36.6% in a year.

AdvanSix has a projected earnings growth rate of 7.7% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 3.2% upward in the past 60 days.

AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 23.6%. ASIX has surged 44.4% in a year. The company carries a Zacks Rank #2.


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