The Mosaic Company MOS released July 2020 sales volume and revenue figures for its segments.
In the Potash unit, the company recorded sales volume of 743,000 tons in July, down 5.7% year over year. Revenues in the segment fell 27.4% year over year to $154 million.
In the Mosaic Fertilizantes unit, sales volume rose 16.7% year over year to 1,201,000 tons. Revenues in the segment fell 11.9% year over year to $385 million.
In Phosphates, the company reported 17% year-over-year rise in sales volume to 676,000 tons. Revenues in the segment rose 3.1% year over year to $233 million.
Shares of Mosaic have lost 9.5% in the past year compared with the industry’s 9% decline.
Mosaic’s adjusted earnings per share were 11 cents in the second quarter that beat the Zacks Consensus Estimate of a loss of 4 cents.
Net sales fell 6.1% year over year to $2,044.7 million in the quarter. However, the figure beat the Zacks Consensus Estimate of $1,871.5 million.
For 2020, Mosaic now expects depreciation, depletion and amortization of $860-$910 million compared with $910-$920 million expected earlier. The company continues to anticipate net interest expenses of $180-$190 million for 2020. Capital expenditures are expected to be around $1.2 billion for 2020.
The company also stated that phosphate fertilizer products prices have strengthened globally. This reflects tightening supply and demand balance. Further, it expects potash prices to be stable. The risk of coronavirus is also expected to persist throughout the remainder of 2020.
Zacks Rank & Key Picks
Mosaic currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space include Northern Dynasty Minerals, Ltd. NAK, Eldorado Gold Corporation EGO and Yamana Gold Inc. AUY, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Northern Dynasty Minerals has an expected earnings growth rate of 35.7% for 2020. The company’s shares have surged 120.3% in the past year.
Eldorado Gold has an expected earnings growth rate of 2,225% for 2020. Its shares have returned 28.8% in the past year.
Yamana has an expected earnings growth rate of 76.9% for 2020. The company’s shares have surged 73.8% in the past year.
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