Mosaic Stock Rises On Q1 Profit Beat, Strong Fertilizer Demand Outlook: Retail’s Still Divided

Mosaic (MOS) stock rose 4.1% in premarket trading on Wednesday after the company’s first-quarter earnings topped Wall Street’s estimates.

According to Koyfin data, Mosaic reported adjusted earnings of $0.49 per share for the quarter ended March 31, while analysts expected it to post $0.45 per share.

The fertilizer producer reported a net income of $238 million for the first quarter, compared with $45 million in the year-ago quarter.

However, first-quarter revenue fell 2% year-over-year to $2.6 billion, reflecting the impact of lower selling prices in the potash segment.

The company’s potash sales volume decreased to 2.1 million tonnes in the first quarter, compared with 2.2 million tonnes in the year-ago quarter despite strong demand as Mosaic curtailed production in response to weather-related logistical challenges.

However, the company, one of the top potash producers in the world, expects strong demand for the remainder of the year and raised its production forecast to 9.0 to 9.4 million tonnes.

“Global potash demand is robust, and reduced supply expectations from the former Soviet Union, China, and Chile have further tightened the supply and demand picture,” the company said.

Its phosphate sales declined in the first quarter due to lower sales volumes but like potash it expects phosphate demand to also remain strong.

“North American phosphate application is expected to be robust, and inventories are likely to be depleted heading into summer fill,” the company said.

The company forecasted sales volumes for the second quarter at its retail unit, Fertilizantes, to be approximately 30% higher than the first quarter.

Retail sentiment on Stocktwits was in the ‘neutral’ (46/100) territory, while retail chatter was ‘normal.’

Mosaic shares have gained 22.8% year to date (YTD).

Also See: Allegiant Stock Flies Premarket After Q1 Profit Beat, Firm Says Demand Is Stabilizing: Retail’s Still Bearish

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