Mosaic's Q3 Earnings and Revenues Miss Estimates on Lower Prices

The Mosaic Company MOS reported a profit of $122.2 million or 38 cents per share for third-quarter 2024. This compares favorably with a loss of $4.2 million or a penny per share in the year-ago quarter. Barring one-time items, adjusted earnings per share were 34 cents, missing the Zacks Consensus Estimate of 58 cents.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Net sales declined nearly 20.8% year over year to $2,810.9 million in the quarter. The metric missed the Zacks Consensus Estimate of $3,284.3 million. Lower selling prices primarily caused the downside.

The Mosaic Company price-consensus-eps-surprise-chart | The Mosaic Company Quote

Net sales in the Potash segment were $526 million in the reported quarter, down around 26.9% from $720 million in the prior-year quarter. Sales volumes totaled 2 million tons, down 9.1% year over year. The figure was higher than our estimate of 1.968 million tons. The segment’s gross margin declined to $61 per ton from $95 per ton in the year-ago quarter.The Phosphate division’s net sales were $1 billion, flat year over year. Sales volumes in the segment totaled 1.5 million tons, down 11%. It missed our estimate of 1.634 million tons. The gross margin in the quarter was $96 per ton, up from $53 per ton in the year-ago quarter.Net sales in the Mosaic Fertilizantes segment were around $1.4 billion in the quarter, down 17.6% year over year. Sales volume decreased 6.4% to 2.9 million tons, missing our estimate of 3.147 million. The gross margin in the quarter was $44 per ton, up from $35 per ton in the prior-year quarter.

At the end of the quarter, Mosaic had cash and cash equivalents of $301.6 million, down 48.9% year over year. Long-term debt was $3,197.4 million, up 33.1% year over year.Net cash provided by operating activities declined nearly 51.7% to $312.9 million in the reported quarter.

The company projects total capital expenditures for 2024 in the band of $1.1-$1.2 billion. Selling, general & administrative expenses are projected to be $500-$530 million. The company expects net interest expense to be $160-$180 million.

Shares of Mosaic have lost 18.8% in the past year compared with an 10.3% decline of the industry.

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MOS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.CF Industries Holdings Inc. CF logged earnings of $1.55 per share for the third quarter, topping the Zacks Consensus Estimate of $1.05. CF anticipates the global supply-demand balance to remain constructive, as inventories are believed to be below average globally while energy spreads remain significant between North America and high-cost production in Europe. ICL Group Ltd ICL recorded adjusted earnings of 11 cents per share for the third quarter, topping the Zacks Consensus Estimate of 8 cents. ICL raised its guidance for full-year 2024.PPG Industries, Inc. PPG logged third-quarter adjusted earnings per share of $2.13, missing the Zacks Consensus Estimate of $2.15. PPG anticipates flat organic sales and adjusted earnings per share in the $8.15 to $8.30 range for full-year 2024.

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