Why Is Mosaic (MOS) Up 2.5% Since Last Earnings Report?

It has been about a month since the last earnings report for Mosaic (MOS). Shares have added about 2.5% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Mosaic due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Mosaic's Q3 Earnings and Revenues Miss Estimates on Lower PricesMosaic 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.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.Segment HighlightsNet 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.FinancialsAt 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.OutlookThe 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.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.The consensus estimate has shifted -8% due to these changes.VGM ScoresAt this time, Mosaic has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Mosaic has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerMosaic belongs to the Zacks Fertilizers industry. Another stock from the same industry, Scotts Miracle-Gro (SMG), has gained 1% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.Scotts reported revenues of $414.7 million in the last reported quarter, representing a year-over-year change of +10.7%. EPS of -$2.31 for the same period compares with -$2.77 a year ago.Scotts is expected to post a loss of $1.28 per share for the current quarter, representing a year-over-year change of +11.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.3%.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Scotts. Also, the stock has a VGM Score of A.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Mosaic Company (MOS): Free Stock Analysis Report The Scotts Miracle-Gro Company (SMG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks