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What to Expect from Mosaic’s 1Q18 Earnings

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Mosaic’s performance

Mosaic (MOS) plans to announce its 1Q18 earnings on May 7 after the market closes. The stock has had a positive run so far this year with a YTD (year-to-date) gain of 5.3%, outperforming Nutrien (NTR), CVR Partners (UAN), and CF Industries (CF).

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EPS expectations

The company is expected to report EPS (earnings per share) of $0.28, which would be significant growth from $0.04 in 1Q17. In the next four quarters, the EPS is estimated to grow to $1.45 per share, which would be a 32% increase from $1.1 in the last four quarters.

The fertilizer industry has been experiencing supply-demand imbalances. As a result, fertilizer producers (MOO) around the world have faced headwinds growing sales and expanding margins.

Stabilizing industry

Fertilizer prices are key drivers to watch in the earnings release of Mosaic and other producers. The prices have in the past significantly undermined sales and operating performances. However, Intrepid Potash’s and CF Industries’ recent earnings results show that the fertilizer sector has stabilized, which could be reflected in Mosiac’s upcoming earnings.

Series overview

In this series, we’ll discuss expectations for Mosaic’s sales, gross margins, and EBITDA (earnings before interest, tax, depreciation, and amortization) margin expectations for 1Q18.

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