The Mosaic Company (MOS) is set to announce its 3Q16 earnings on November 1, 2016. By capacity, Mosaic is the top global phosphate producer and the fourth-largest potash producer in the world. Despite its significant presence in the market, Mosaic’s stock has performed poorly so far this year.
So far in 2016, Mosaic has underperformed the benchmark S&P 500 Index (SPY) as well as the VanEck Vectors Agribusiness ETF (MOO). Mosaic’s stock has fallen 14.5% YTD (year-to-date), while SPY has risen 6.4% and MOO has risen 8.4% YTD.
Mosaic, PotashCorp (POT), Israel Chemicals (ICL), and Intrepid Potash (IPI) have been affected by falling fertilizer prices. More recently, Mosaic was in the news for a sinkhole found at one of its facilities in Florida, which could attract regulatory liabilities for the company. Mosaic was also found to have delayed disclosing this event as it happened, putting investors’ faith in the company’s management in peril.
We’ll look for more details on the development of the above issue in Mosaic’s 3Q16 earnings release. In the meantime, we’ll focus on expectations for the company’s sales, gross margins, and earnings per share. Toward the end of the series, we’ll look at analysts’ next-12-month recommendations and price targets for the company.
We’ll begin with a discussion on Mosaic’s sales.