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Mosaic (MOS) Declares Sales Volumes & Revenues of Segments

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The Mosaic Company MOS released sales volume and revenue figures for its segments for January 2020.

In the Potash unit, the company recorded sales volume of 728,000 tons in January, up 30% year over year. Revenues in the segment rose 6.9% year over year to $170 million in the month.

In Phosphates, the company reported 16.8% year-over-year growth in sales volume to 599,000 tons. However, revenues in the segment fell 15.4% year over year to $198 million in January.

In the Mosaic Fertilizantes unit, sales volumes rallied 35.7% year over year to 752,000 tons and revenues rose 7.7% to $281 million.

Shares of Mosaic have lost 46.6% in the past year compared with the industry’s 23.7% decline.

Mosaic reported adjusted loss per share of 29 cents in fourth-quarter 2019, which was wider than the Zacks Consensus Estimate of a loss of a penny.

Net sales fell around 18% year over year to $2,076.3 million in the quarter due to lower sales volumes and phosphate prices. Nevertheless, the figure surpassed the Zacks Consensus Estimate of $1,941.5 million.

During fourth-quarter 2019 earnings call, the company stated that it expects strong global demand for fertilizers in 2020 based on solid worldwide demand for grains and oilseeds and strong farm economics.

Mosaic expects China to be a major factor for phosphate market fundamentals this year in the wake of the coronavirus outbreak. Per Mosaic, much of the phosphate production in Hubei province has been idled or curtailed due to coronavirus. The company envisions this decline in supply coupled with limited new capacity in other parts of the world to contribute to a sustained tightening of phosphate market fundamentals.

The company also noted that production curtailments that started in second-half 2019 are bringing the potash market into balance this year. It sees strong demand in the Northern Hemisphere for spring. Mosaic also expects a typical surge in activity in the Southern Hemisphere in third-quarter 2020.


Zacks Rank & Key Picks

Mosaic currently carries a Zacks Rank #3 (Hold).

Few better-ranked stocks in the basic materials space are Daqo New Energy Corp DQ, Sibanye Gold Limited SBSW and Impala Platinum Holdings Limited IMPUY, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Daqo New Energy has an expected long-term earnings growth rate of 29%. The company’s shares have surged 73.2% in the past year.

Sibanye has an expected long-term earnings growth rate of 20.4%. Its shares have returned 109.5% in the past year.    

Impala Platinum has an expected long-term earnings growth rate of 26.5%. The company’s shares have surged 125.3% in the past year.

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