The Mosaic Company MOS is set to release second-quarter 2020 results on Aug 3, after the closing bell.
Mosaic’s second-quarter results are likely to reflect the benefits of strong demand for fertilizers application in North America and Brazil.
Mosaic’s shares have lost 44.5% in the past year compared with the industry’s 29.6% decline.
Let’s see how things are shaping up for this announcement.
What to Expect in Q2
Mosaic released monthly sales volume figures for its segments.
In the Potash unit, it recorded sales volume of 914,000 tons in April and 810,000 tons in May. On a year-over-year basis, sales volumes for April and May mark an increase of around 43% and 9%, respectively.
In Phosphates, the company reported 751,000 tons in April and 608,000 tons in May. On a year-over-year basis, sales volumes for April and May mark a rise of 22.5% and decline of 19.1%, respectively.
In the Mosaic Fertilizantes unit, sales volumes were 592,000 tons in April and 870,000 tons in May. On year-over-year basis, the sales volumes for April and May mark growth of 11.5% and 39.6%, respectively.
Other Factors at Play
In May, Mosaic stated that in North America, fertilizers applications are witnessing peak spring season and demand is also high. Further, its April shipment volumes were robust and North American prices throughout April were positive.
Also, the Brazilian growers are benefiting from the weak Brazilian currency and fertilizer demand also remains strong. However, the company anticipates pricing pressure due to late arrival of phosphate cargos.
What do the Estimates Indicate?
The Zacks Consensus Estimate for Mosaic’s second-quarter consolidated sales is currently pegged at $1,872 million, which calls for a decline of 14% from the year-ago quarter’s tally.
The Zacks Consensus Estimate for net sales in the Phosphates segment is currently pegged at $799 million, which calls for a fall of 12.9% year over year.
Moreover, the consensus mark for net sales in the Potash segment is currently pegged at $533 million, which calls for a fall of 11% year over year.
The Zacks Consensus Estimate for net sales in the Mosaic Fertilizantes segment is currently pegged at $763 million, which calls for a decline of 8.4% year over year.
The Mosaic Company Price and EPS Surprise
The Mosaic Company price-eps-surprise | The Mosaic Company Quote
Zacks Model
Our proven model does not predict an earnings beat for Mosaic this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Mosaic is -90.91%. The Most Accurate Estimate and the Zacks Consensus Estimate are currently pegged at a loss of 7 cents and a loss of 4 cents, respectively. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Mosaic carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some companies that you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Barrick Gold Corporation GOLD, scheduled to release second-quarter 2020 earnings on Aug 10, has an Earnings ESP of +0.54% and carries a Zacks Rank #3.
FMC Corporation FMC, slated to release second-quarter 2020 earnings on Aug 4, has an Earnings ESP of +1.13% and a Zacks Rank #3.
Pan American Silver Corp. PAAS, scheduled to release second-quarter 2020 results on Aug 5, has an Earnings ESP of +23.81% and carries a Zacks Rank #3.
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