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Mosaic's (MOS) Earnings and Revenues Lag Estimates in Q2
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The Mosaic Company (MOS - Free Report) logged profits of $1,035.9 million or $2.85 per share in second-quarter 2022, up from $437.2 million or $1.14 per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were $3.64, missing the Zacks Consensus Estimate of $3.93.
Net sales rose roughly 91.8% year over year to $5,373.1 million in the quarter. It missed the Zacks Consensus Estimateby 4.29%. Sales were driven by gains in all segments and higher year-over-year prices.
The Mosaic Company Price, Consensus and EPS Surprise
Net sales in the Potash segment rose to around $1.6 billion in the reported quarter, from $663 million in the prior year’s quarter. The upside was driven by higher prices. Sales volumes in the segment were flat year over year to 2.3 million tons. The segment’s gross margin per ton increased to $403 from $93 in the year-ago quarter.
The Phosphate division’s net sales climbed around 50% year over year to $1.8 billion in second-quarter 2022, driven by higher prices. Sales volumes in the segment fell 15% year over year in the quarter to 1.7 million tons. The gross margin per ton in the quarter was $383, up from $156 in the year-ago quarter.
Net sales in the Mosaic Fertilizantes segment were around $2.3 billion in the quarter, up around 118.1% year over year, driven by higher year-over-year prices. Sales volume in the quarter declined to 2.32 million tons from 2.34 million tons. The gross margin per ton in the quarter was $450, up around 144.6% year over year.
Financials
At the end of the quarter, Mosaic had cash and cash equivalents of $839.1 million, up from $769.5 million as of Dec 31, 2021. Long-term debt declined to $3,351.9 million from $3,382.2 million as of Dec 31, 2021.
Net cash provided by operating activities increased roughly 56.2% year over year to $1,585.1 million in the reported quarter.
Outlook
The company noted that it expects tight grain and oilseed markets to persist through the balance of 2022 and into 2023. The war in Ukraine, high temperatures in North America and Europe, and developing drought conditions in parts of South America underscore the risk for lower yields globally, MOS stated.
Domestic crop prices continue to justify nutrient application to drive higher yields in North America, Brazil and China, notwithstanding higher input costs. The Indian government continues to support importers to ensure ample domestic supply. While domestic inventories remain at historically low levelsin India, shipments have increased in recent weeks, Mosaic 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 $420-$450 million.
Price Performance
Shares of Mosaic have increased 64% in the past year compared with a 53.9% rise 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 Albemarle Corporation (ALB - Free Report) , Cabot Corporation (CBT - Free Report) and Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) .
Albemarle has a projected earnings growth rate of 247% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 7.8% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 22.5%, on average. ALB has gained around 15.9% in a year and currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cabot, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 22.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 6% upward in the past 60 days.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 34.7% over a year.
Sociedad has a projected earnings growth rate of 513.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 57.8% upward in the past 60 days.
Sociedad’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average being 28.2%. SQM has gained 102.9% in a year. The company sports a Zacks Rank #1.
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Mosaic's (MOS) Earnings and Revenues Lag Estimates in Q2
The Mosaic Company (MOS - Free Report) logged profits of $1,035.9 million or $2.85 per share in second-quarter 2022, up from $437.2 million or $1.14 per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were $3.64, missing the Zacks Consensus Estimate of $3.93.
Net sales rose roughly 91.8% year over year to $5,373.1 million in the quarter. It missed the Zacks Consensus Estimateby 4.29%. 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-eps-surprise-chart | The Mosaic Company Quote
Segment Highlights
Net sales in the Potash segment rose to around $1.6 billion in the reported quarter, from $663 million in the prior year’s quarter. The upside was driven by higher prices. Sales volumes in the segment were flat year over year to 2.3 million tons. The segment’s gross margin per ton increased to $403 from $93 in the year-ago quarter.
The Phosphate division’s net sales climbed around 50% year over year to $1.8 billion in second-quarter 2022, driven by higher prices. Sales volumes in the segment fell 15% year over year in the quarter to 1.7 million tons. The gross margin per ton in the quarter was $383, up from $156 in the year-ago quarter.
Net sales in the Mosaic Fertilizantes segment were around $2.3 billion in the quarter, up around 118.1% year over year, driven by higher year-over-year prices. Sales volume in the quarter declined to 2.32 million tons from 2.34 million tons. The gross margin per ton in the quarter was $450, up around 144.6% year over year.
Financials
At the end of the quarter, Mosaic had cash and cash equivalents of $839.1 million, up from $769.5 million as of Dec 31, 2021. Long-term debt declined to $3,351.9 million from $3,382.2 million as of Dec 31, 2021.
Net cash provided by operating activities increased roughly 56.2% year over year to $1,585.1 million in the reported quarter.
Outlook
The company noted that it expects tight grain and oilseed markets to persist through the balance of 2022 and into 2023. The war in Ukraine, high temperatures in North America and Europe, and developing drought conditions in parts of South America underscore the risk for lower yields globally, MOS stated.
Domestic crop prices continue to justify nutrient application to drive higher yields in North America, Brazil and China, notwithstanding higher input costs. The Indian government continues to support importers to ensure ample domestic supply. While domestic inventories remain at historically low levelsin India, shipments have increased in recent weeks, Mosaic 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 $420-$450 million.
Price Performance
Shares of Mosaic have increased 64% in the past year compared with a 53.9% rise 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 Albemarle Corporation (ALB - Free Report) , Cabot Corporation (CBT - Free Report) and Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) .
Albemarle has a projected earnings growth rate of 247% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 7.8% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 22.5%, on average. ALB has gained around 15.9% in a year and currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cabot, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 22.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 6% upward in the past 60 days.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 34.7% over a year.
Sociedad has a projected earnings growth rate of 513.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 57.8% upward in the past 60 days.
Sociedad’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average being 28.2%. SQM has gained 102.9% in a year. The company sports a Zacks Rank #1.