Mosaic (MOS) Provides April & May Sales Details, Tweaks Q2 View
The Mosaic Company MOS has announced its business unit-specific sales and revenues for April and May 2023. It also provided guidance for second-quarter 2023 sales volumes.
Performance in April & May
MOS reported Potash segment sales volumes of 1,617,000 tons for April and May combined. This marked a 12.6% increase over the prior-year total of 1,436,000 tons. The company recorded total revenues from this segment of $672 million for the two months, down from $976 million a year ago.
Sales volumes for the Phosphate division were reported to be 1,329,000 tons in April-May, a 38.6% increase over the 959,000 tons reported in last year's comparable period. The segment's revenues were $948 million for April and May, down from $1,027 million in the previous year.
In addition, sales volumes from the company's Mosaic Fertilizantes segment were 1,305,000 tons for the months under review, down 8.4% from 1,424,000 tons. This segment's revenues were $791 million in April and May 2023, down from $1,426 million in April and May 2022.
Backed by the impact of solid spring demand in North America, MOS now projects total sales volumes of the Potash unit to be near the high end of its prior stated guidance of 2.0-2.2 million tons for the second quarter of 2023. In terms of pricing, the company currently anticipates that realized MOP prices at the mine will be toward the low end of its earlier expectation of $325-375 per ton. The new pricing direction takes into account the recent China contract settlement of $307 per ton.
The company anticipates the Phosphates unit’s sales volumes for the second quarter to be toward the low end of its previous guidance of 1.8-2.0 million tons. North American customers are postponing inventory restocking to the third quarter due to strong demand for the spring season. Realized Diammonium phosphate (DAP) prices on a FOB basis are anticipated to be at the high end of its guided range of $550 to $600 per ton. The company stated that results for the quarter are likely to reflect the impact of higher-priced sales at the beginning of the quarter.
Shares of Mosaic have plunged 27.8% in the past year compared with a 26.2% fall of the industry.
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The Mosaic Company Price and Consensus
The Mosaic Company price-consensus-chart | The Mosaic Company Quote
Zacks Rank & Key Picks
Mosaic currently carries a Zacks Rank #5 (Strong Sell).
Better-ranked stocks to consider in the basic materials space include Koppers Holdings Inc. KOP, Silvercorp Metals Inc. SVM and Linde plc LIN. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Koppers currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for current-year earnings for KOP is currently pegged at $4.40, implying year-over-year growth of 6.3%. It has a trailing four-quarter earnings surprise of roughly 13.64%, on average. The stock has gained around 42.8% in a year.
Silvercorp Metals currently carries a Zacks Rank #1. The consensus estimate for current fiscal-year earnings for Silvercorp is currently pegged at 27 cents, suggesting year-over-year growth of 28.6%. The stock has gained roughly 6.3% in the past year.
Linde currently carries a Zacks Rank #2. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 3.8% upward in the past 60 days. Linde beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 6.9% on average. The stock has gained roughly 28% in the past year.
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