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Tickers in this Article: MOS
Mosaic Company The (NYSE:MOS) announced its results for the most recent quarter on October 2, 2012. The Mosaic Company is a producer and marketer of concentrated phosphate and potash crop nutrients for the global agriculture industry.

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The Numbers: Mosaic Company The missed estimates with adjusted net income of $1.03 per share and revenues of $2.51 billion. Analysts were expecting adjusted net income of $1.15 per share and revenues of $2.54 billion. Revenue fell 18.8% from the same period last year. Last quarter marks the third in a row in which the company has seen falling revenue on a year-over-year basis. Mosaic Company The's net income for the first quarter fell 18.4% from last year's figures to $429.4 million. The company has now reported lower net income in each of the last four quarters.

Management Quote: "The long-term outlook for crop nutrition is outstanding, and Mosaic is well positioned as the world's largest potash and phosphates producer," said Jim Prokopanko, President and Chief Executive Officer of Mosaic. "Drought and other weather-related issues in several of the world's key agricultural regions severely impacted this year's corn, soybean and wheat crops and provided a vivid reminder of just how tenuous global food security is. Our products are essential in helping the world grow the food it needs."

A Look Back: Margins were up in the fourth quarter of the last fiscal year, following a drop in the previous quarter. Gross margins grew to 29.8%, up 2.3 percentage points from the year-earlier quarter. In the third quarter of the last fiscal year, the figure rose 5.2 percentage points to 29.6% from the year earlier quarter.

Net income has dropped 10.5% year-over-year on average across the last five quarters. Performance was hurt by a 49.6% decline in the third quarter of the last fiscal year from the year-earlier quarter.

Looking Ahead: Over the past 60 days, the outlook for the company's performance next quarter has become increasingly unfavorable. The average estimate for the second quarter is $1.32 per share, a drop from $1.38. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. For the fiscal year, the average estimate has moved down from $5.10 a share to $5.03 over the last 60 days.

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