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The Mosaic Company: An Analysis of Its 3Q15 Earnings

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Mosaic’s year-to-date returns

Mosaic (MOS) is one of the major global players in the fertilizer industry. Year-to-date (or YTD), the company has returned -28%. The VanEck Vectors Agribusiness ETF (MOO), which holds about 2.7% of Mosaic as a percentage of its total portfolio, has returned -7% to its investors YTD. Potash Corporation (POT), which recently announced its 3Q15 earnings, is also in the negative territory with a YTD return of -42%.

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Overall weakness

These terrible returns indicate a general weakness in the agricultural fertilizer business in 2015. Earnings often provide a preview of what’s in the future for these players. To know more about Potash Corporation’s earnings, you can read PotashCorp: An Analysis of Its 3Q15 Earnings.

Mosaic reported its 3Q15 earnings on November 3, 2015, with EPS (earnings per share) of $0.62. This was a 19% surprise, beating analysts’ estimate of $0.53. The company’s shares have fallen 10% since the company released its earnings.

Potash Corporation (POT), Mosaic (MOS), CF Industries Holdings (CF), and Agrium (AGU) form about 14% of the VanEck Vectors Agribusiness ETF (MOO) portfolio.

Series overview

In this series, we’ll look at some of the key developments that took place at Mosaic during the second quarter as well as the outlook for the company. First, we’ll look at Mosaic’s top line and see how the Phosphate and Potash segments performed during the quarter. Then we’ll look at factors that impacted the top line.

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