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Mosaic Stock Down after Its 1Q18 Earnings Results

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Mosaic stock’s 1Q18 earnings

The Mosaic Company (MOS) announced its 1Q18 earnings after the market closed on May 7. It posted adjusted EPS (earnings per share) of $0.11. 

The company missed analysts’ mean EPS estimate of $0.24, but its sales of $1.9 billion managed to beat analysts’ mean estimate of $1.8 billion.

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How the stock reacted

The company missed estimates, which led to a fall of nearly 2% in its stock to $27.02 in the after-hours session. 

Nutrien (NTR) (POT), which also announced its earnings yesterday, was trading at a fall of almost 52 basis points at $46. Peer (MOO) CF Industries (CF) was flat in the after-hours session, while it closed ~2% lower at $37.7 compared to a day earlier.

Performance metrics

Mosaic’s Phosphate segment reported 1.9 million metric tons in sales volume against the company’s guidance of 1.9 million–2.2 million metric tons, while its adjusted gross margin came in at $57 per metric ton compared to guidance of $55–$65 per metric ton.

The Potash segment’s sales volume came in at 1.7 million metric tons, which came in at the lower end of the company’s guidance range of 1.7 million–2 million metric tons. The segment’s adjusted gross margin exceeded the guidance range of $50–$60 per metric ton at $64 per metric ton during the quarter.

Finally, the Fertilizantes segment’s sales volume came in at 1.6 million metric tons compared to the company’s guidance range of 1.3 million–1.6 million metric tons, and its adjusted gross margin came in at $37 per metric ton, exceeding the guidance range of $25–$35 per metric ton.

Overall, the company’s gross margin expanded to 12.6%, up from 8.5% a year ago.

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