Mosaic (MOS) Reports Volumes, Sales for October & November
The Mosaic Company MOS recently reported its combined October and November 2023 sales volumes and revenues by business segment.
In the first two months of the fourth quarter of 2023, potash sales volumes rose around 31.3% year over year to roughly 1.64 million tons. However, revenues dropped from $780 million in the same period of 2022 to $506 million.
Potash sales volumes and MOP prices at the mine are projected to be near the low end of the previous projection range of 2.4-2.6 million tons and $235-260 per ton, respectively, in the fourth quarter.
Phosphate sales volumes rose 11.5% year over year in the first two months of the fourth quarter of 2023 to around 1.02 million tons, but revenues fell from $785 million to $677 million.
Phosphate sales volumes are expected to be toward the low end of the previous projection range of 1.6-1.8 million tons in the fourth quarter. The fourth-quarter realized DAP prices at the plant are projected to be within the earlier estimated range of $530-$580 per ton.
The dry weather poses a risk to Brazil's fertilizer shipments in the fourth quarter, MOS noted.
Shares of Mosaic have lost 19.6% over the past year compared with 21.8% decline of its industry.
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The company, on its third-quarter call, said that it expects the global grain and oilseed markets to remain tight into 2024. Geopolitical unrest, extreme weather and reduced fertilization are affecting crop production. Strong demand from demographic shifts and renewable fuel consumption is straining stocks.
Growers are focused on maximizing yields, leading to increased fertilizer application in North America and Brazil. Potash and phosphate inventories are depleted in major growing regions, necessitating replenishment in 2024.
Potash supply is uncertain, with Belarusian exports down by 34 million tons due to sanctions and limited growth expected in 2024. China prioritizes domestic demand over phosphate exports, keeping global markets tight throughout the year and into 2024.
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 #3 (Hold).
Better-ranked stocks in the basic materials space include Denison Mines Corp. DNN, Axalta Coating Systems Ltd. AXTA and Hawkins, Inc. HWKN.
Denison Mines has a projected earnings growth rate of 100% for the current year. It currently carries a Zacks Rank #1 (Strong Buy). DNN delivered a trailing four-quarter earnings surprise of roughly 225%, on average. The stock is up around 41.7% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Axalta has a projected earnings growth rate of 5.4% for the current year. It currently carries a Zacks Rank #1. AXTA delivered a trailing four-quarter earnings surprise of roughly 6.7%, on average. The stock is up around 29.6% in a year.
Hawkins has a projected earnings growth rate of 21% for the current year. It currently carries a Zacks Rank #2 (Buy). Hawkins delivered a trailing four-quarter earnings surprise of roughly 27.5%, on average. HWKN shares are up around 80.8% in a year.
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