Q2 Preview: Mosaic (MOS) Looks For Rebound on Stronger Pricing
Tweet
Share
E-mailGet Alerts MOS Hot Sheet
Join SI Premium – FREE
Mosaic Co. (NYSE: MOS) is trading lower ahead of their second quarter earnings report, expected out after the market closes today. Shares are down 2.2% this afternoon.
MOS is expected to report an EPS of $0.91 on revs of $2.44 billion. Last quarter, the Plymouth, MN-based agriculture company posted an EPS of $0.67 on revs of $2.19 billion, mixed to the consensus calling for an EPS of $0.72 with revs of $1.97 billion. For Q210, the company produced an EPS of $0.32 ex-items on revs of $1.7 billion, again mixed to the consensus EPS of $0.35 and revs of $1.68 billion.
Shares of the company moved 15.7% to close the quarter out at $67.63. Shares are up 10.1% since then, and Mosaic ended 2010 24% higher.
A simple valuation pegs MOS with a forward P/E of 15.5x FY12 EPS estimates, compared to 13.2x for Agrium (NYSE: AGU) and 18.1% for Potash Corp. of Saskatchewan, Inc. (NYSE: POT).
Data from Bloomberg has 8 analysts with a Buy on MOS, 11 with a hold, and two suggesting to Sell. The analyst price target average is $74, with a high of $90 and low of $51.
Summary
President and Chief Executive Officer Jim Prokopanko commented on their Q111 release, "Recent market developments reinforce the long-term attractiveness of the crop nutrient sector...We expect the market momentum of the past several quarters to continue as distributors replenish depleted inventories and farmers invest in crop nutrients to rebuild phosphate and potash levels in their soils."
The company is estimating selling 3.3 - 3.6 million tons of phosphates at a realized diammonium phosphate price, FOB plant, of $430 - $460 per ton. They also are looking to move 1.6 - 1.9 tons of potash at a realized muriate of potash price, FOB plant, $310 - $340 per ton.
Gleacher & Co. notes that MOS has underperformed its peers amid revival year in 2010. They see relative underperformance disappearing as increases in phosphate and potash prices transition into stronger quarterly reports.
Mosaic Co. is expected to release their Q211 earnings on Tuesday, January 4, 2011, at approximately 4:00pm EST. Stay tuned to StreetInsider.com's EPS Central section to see our analysis of the highly-anticipated quarterly results withi0 n seconds of their release.
MOS is expected to report an EPS of $0.91 on revs of $2.44 billion. Last quarter, the Plymouth, MN-based agriculture company posted an EPS of $0.67 on revs of $2.19 billion, mixed to the consensus calling for an EPS of $0.72 with revs of $1.97 billion. For Q210, the company produced an EPS of $0.32 ex-items on revs of $1.7 billion, again mixed to the consensus EPS of $0.35 and revs of $1.68 billion.
Shares of the company moved 15.7% to close the quarter out at $67.63. Shares are up 10.1% since then, and Mosaic ended 2010 24% higher.
A simple valuation pegs MOS with a forward P/E of 15.5x FY12 EPS estimates, compared to 13.2x for Agrium (NYSE: AGU) and 18.1% for Potash Corp. of Saskatchewan, Inc. (NYSE: POT).
Data from Bloomberg has 8 analysts with a Buy on MOS, 11 with a hold, and two suggesting to Sell. The analyst price target average is $74, with a high of $90 and low of $51.
Summary
President and Chief Executive Officer Jim Prokopanko commented on their Q111 release, "Recent market developments reinforce the long-term attractiveness of the crop nutrient sector...We expect the market momentum of the past several quarters to continue as distributors replenish depleted inventories and farmers invest in crop nutrients to rebuild phosphate and potash levels in their soils."
The company is estimating selling 3.3 - 3.6 million tons of phosphates at a realized diammonium phosphate price, FOB plant, of $430 - $460 per ton. They also are looking to move 1.6 - 1.9 tons of potash at a realized muriate of potash price, FOB plant, $310 - $340 per ton.
Gleacher & Co. notes that MOS has underperformed its peers amid revival year in 2010. They see relative underperformance disappearing as increases in phosphate and potash prices transition into stronger quarterly reports.
Mosaic Co. is expected to release their Q211 earnings on Tuesday, January 4, 2011, at approximately 4:00pm EST. Stay tuned to StreetInsider.com's EPS Central section to see our analysis of the highly-anticipated quarterly results withi0 n seconds of their release.
Are you missing key trading opportunities? Upgrade to StreetInsider Premium and get a step ahead of the market - FREE TRIAL!
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
