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Earnings Review and Free Research Report: Mosaic’s Operating Earnings Rocketed 669.1%

Research Desk Line-up: American Vanguard Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 17, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on The Mosaic Co. (NYSE: MOS), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=NYSE, following the Company's posting of its second quarter fiscal 2017 operating results on August 01, 2017. The world's largest producer of finished phosphate products outperformed to- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:


Get more of our free earnings reports coverage from other constituents of the Agricultural Chemicals industry. Pro-TD has currently selected American Vanguard Corporation (NYSE: AVD) for due-diligence and potential coverage as the Company announced on July 31, 2017, its financial results for Q2 and mid-year 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on American Vanguard when we publish it.

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Earnings Reviewed

Mosaic's net sales in Q2 2017 were $1.75 billion, up from $1.67 billion in Q2 2016; with higher sales volumes offsetting lower phosphates realized prices. The Company's revenue numbers exceeded analysts' forecasts of $1.65 billion.

For Q2 2017, Mosaic's operating earnings were $94.6 million, up from $12.3 million in Q2 2016, driven by higher phosphate and potash sales volumes, higher potash, and international distribution segment margins, partially offset by lower phosphate margins.

Mosaic reported Q2 2017 net income of $97.3 million, or $0.28 per diluted share, compared to net loss of $10.2 million, or loss of $0.03 per diluted share, in Q2 2016. The Company's adjusted earnings totaled $0.29 per share, ahead of Wall Street's estimates of $0.29 per share.

Segment Results

During Q2 2017, Mosaic's net sales in the Phosphates segment were $975 million, marginally higher from $976 million in Q2 2016, with higher sales volumes largely offsetting lower finished product prices. The product's gross margin was $76 million, or 8% of net sales, compared to $100 million, or 10% of net sales in the year ago same period, reflecting lower finished product selling prices, and higher ammonia costs on a y-o-y basis.

The segment's average DAP selling price (FOB plant) was $336 per tonne in Q2 2017 compared to $343 per tonne in Q2 2016. Phosphates segment's total sales volumes were 2.6 million tonnes, up from 2.4 million tonnes in the prior year's same quarter.

For Q2 2017, Mosaic's net sales in the Potash segment totaled $468 million, up from $457 million in Q2 2016, driven primarily by higher sales volumes. Gross margin was $110 million, or 23% of net sales, compared to $53 million, or 12%, in the prior year's corresponding period, primarily driven by lower costs of production as a result of both higher operating rates and lower plant spending.

The segment's average MOP selling price (FOB plant) was $179 per tonne in Q2 2017, up from $178 per tonne in Q2 2016. The Potash segment's total sales volumes were 2.2 million tonnes for the reported quarter, up from 2.0 million tonnes in the year earlier comparable quarter. Potash production was 2.3 million tonnes, or 93% of operational capacity, in Q2 2017, up from 1.8 million tonnes, or 67% of operational capacity, in Q2 2016.

Mosaic's net sales in the International Distribution segment were $583 million for Q2 2017, up from $534 million in Q2 2016, driven by higher sales volumes. Gross margin was $39 million, or 7% of net sales, compared to $5 million, or 1% of net sales, in the prior year's same quarter, driven by a higher mix of premium products and higher price appreciation on inventories held.

For Q2 2017, the segment's average selling price was $356 per tonne compared to $374 per tonne in Q2 2016. International Distribution segment's total sales volumes were 1.6 million tonnes, up from 1.4 million tonnes in Q2 2016.

Cash Matters

Mosaic's cash flow provided by operating activities was $243 million in Q2 2017 compared to $584 million in Q2 2016. The Company's capital expenditures totaled $169 million in the reported quarter. As of June 30, 2017, Mosaic's total cash and cash equivalents, excluding restricted cash, were $661 million and long-term debt was $3.8 billion.

Financial Guidance

For Q3 2017, Mosaic's total sales volumes from the Phosphates segment are expected to range from 2.2 million to 2.5 million tones. The Company's realized DAP price (FOB plant) is estimated to range from $310 to $330 per tonne for the upcoming quarter and gross margin rate is estimated to be in the range of 7% to 9%.

The Company's total sales volumes for the Potash segment are expected to range from 1.9 million to 2.2 million tonnes for Q3 2017. Mosaic's realized MOP price (FOB plant) is estimated to range from $165 to $180 per tonne. Mosaic's gross margin rate in the segment is expected to be in the range of 15% to 18%. Total sales volumes for the International Distribution segment are expected to range from 2.3 million to 2.6 million tonnes for Q3 2017.

For FY17, Mosaic is expecting to incur capital expenditures in the range of $800 million to $850 million down from a range of $800 million to $900 million. The Company's Potash sales volume is forecasted to be in the range of 8.1 million to 8.6 million tonnes. Phosphates sales volumes are expected to be in the range of 9.5 million to 10 million tonnes and International Distribution sales volumes is anticipated to be in the range of 6.75 million to 7.25 million tonnes.

Stock Performance

At the close of trading session on Wednesday, August 16, 2017, Mosaic's stock price rose 2.03% to end the day at $20.57. A total volume of 5.61 million shares were exchanged during the session, which was above the 3-month average volume of 4.13 million shares. The Company's shares are trading at a PE ratio of 49.09 and have a dividend yield of 2.92%. At Wednesday's closing price, the stock's net capitalization stands at $7.32 billion.

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