What Analysts Project for Mosaic’s 3Q16 Earnings Growth



Mosaic’s EPS

Earlier in this series, we saw The Mosaic Company’s (MOS) performance and expectations for its 3Q16 sales and gross margin. With both having a waterfall effect on the company’s EPS (earnings per share), let’s take a look at estimates for the company’s earnings.

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What to expect

For 3Q16, Wall Street analysts expect EPS of $0.10, an 84% fall in earnings compared to 3Q15’s $0.62. In 2016, Mosaic’s EPS are expected to fall an average of 83% compared to 2015.

However, over the next 12 months, analysts estimate that Mosaic’s earnings will improve significantly, with much of this improvement occurring toward the second half of the period.

Is the worst over?

2016 appears to have been quite detrimental for the company, and things are expected to get better in 2017. Wall Street analysts are estimating YoY earnings growth of about 106% and EPS of $1 for 2017. Implied in this assumption is the expectation of improvements in fertilizer prices (XLB), especially in phosphate and potash, next year.

Investors have been waiting for this price reversal, which could lift Mosaic, PotashCorp (POT), Agrium (AGU), and Israel Chemicals (ICL).

In the final part of this series, we’ll discuss analysts’ consensus next-12-month recommendations and price targets for Mosaic. We’ll also take a look at analysts’ most recent actions on the company.


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