Will Higher Selling Prices Drive Mosaic's (MOS) Q1 Earnings?
The Mosaic Company MOS is scheduled to come up with first-quarter 2022 results after the closing bell on May 2. Higher prices for phosphate and potash driven by strong demand are likely to have supported the fertilizer maker’s sales and margins in the quarter. A tight global supply-demand balance is likely to have boosted prices in the March quarter.
Higher Prices to Boost Profitability
Profitability across the company’s Phosphates and Potash segments is expected to have boosted by higher average selling prices in the first quarter. Its Mosaic Fertilizantes segment is also likely to have benefited from higher prices.
The Zacks Consensus Estimate for first-quarter average selling price per ton for the company’s Phosphates segment stands at $863, suggesting an 80.9% year-over-year increase. The same for the Potash unit is pinned at $586, reflecting a year-over-year rise of 143.1%. The Zacks Consensus Estimate for the Mosaic Fertilizantes segment stands at $714, which reflects a year-over-year increase of around 93%.
Potash prices have strengthened on the back of robust global demand and tight supply. Tight availability along with healthy demand is also driving phosphate prices globally. Fertilizer prices are also shooting higher amid supply concerns triggered by the Russia-Ukraine conflict. The effects of the price surge are likely to get reflected on Mosaic’s top and bottom lines in the first quarter.
The Mosaic Company Price and EPS Surprise
The Mosaic Company price-eps-surprise | The Mosaic Company Quote
Overall Expectations
The Zacks Consensus Estimate for first-quarter consolidated revenues for Mosaic is currently pegged at $4,106 million, reflecting a year-over-year increase of 78.8%. The consensus estimate for earnings is $2.44, which indicates a substantial rise from the prior-year reported number.
Zacks Model
Our proven model predicts an earnings beat for Mosaic this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Earnings ESP: Earnings ESP for Mosaic is +0.89%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Mosaic currently carries a Zacks Rank #1.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter:
Allegheny Technologies Incorporated ATI, scheduled to release earnings on May 4, has an Earnings ESP of +4.55% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Allegheny’s first-quarter earnings has been revised 4.8% upward over the past 60 days. The Zacks Consensus Estimate for ATI’s earnings for the quarter is currently pegged at 22 cents.
Westlake Corporation WLK, slated to release earnings on May 3, has an Earnings ESP of +17.30% and carries a Zacks Rank #1.
The Zacks Consensus Estimate for Westlake's first-quarter earnings has been revised 22.1% upward over the past 60 days. The consensus estimate for WLK’s earnings for the quarter is currently pegged at $4.53.
The Chemours Company CC, scheduled to release earnings on May 2, has an Earnings ESP of +3.83% and carries a Zacks Rank #3.
The Zacks Consensus Estimate for Chemours’ first-quarter earnings has been revised 2.2% upward in the past 60 days. The consensus estimate for CC’s earnings for the quarter is currently pegged at 92 cents.
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Westlake Corp. (WLK) : Free Stock Analysis Report
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