The Mosaic Company (NYSE: MOS) Share Rises After Solid Results

The Mosaic Company (NYSE:MOS) climbed 3 percent to $77.24 after reporting better than expected earnings for its latest quarter. The Plymouth, Minn.-based provider of concentrated phosphate and potash crop nutrients posted a profit of $1.03 billion, or $2.29 a share, for its fiscal second quarter ended on Nov. 30. These results included an after-tax gain of $570 million, or $1.28 a share, from an asset sale. The shares touched the intraday high of $75.80 and low of $73.40. It has 52 week range of $78.18-$37.68. At the current market price, the market capitalization of the stock stands at 33.42 billion shares with beta of 1.22 and P/E of 32.72. Strong demand for fertilizer driven by high U.S. crop prices helped Mosaic Co’s quarterly profit and revenue beat Wall Street’s expectations, boosting shares in extended trading. Backing out the gain, Mosaic earned $1.01 per share in the latest quarter. Sales leapt to $2.67 billion in the latest quarter from $1.71 billion a year ago, and gross margins swelled to 29% from 18% last year. Not surprisingly, management was sounding an optimistic tone. “Mosaic is on pace for an outstanding year in fiscal 2011,” said Jim Prokopanko, the company’s president and CEO. He continued: “Market conditions are excellent as demand is booming, and Company's outlook looks good from any angle and we are beginning calendar 2011 against a backdrop of expected record phosphate and potash demand, low producer inventories and a very lean global distribution pipeline.” He is expecting the corn prices to go up in 2011.Sales of phosphate, the second-most important fertilizer for farmers, rose 49 percent to $1.97 billion during the quarter. For the fiscal third quarter, Mosaic expects phosphate volumes of 2.4 million to 2.7 million tonnes. Phosphate production has been curtailed in recent months due to the partial shut-down of a large Florida mine. Returning the mine to 100 percent capacity is “one of our highest priorities,” Prokopanko said. To reduce dependence on its phosphate business, Mosaic is in the middle of a $5 billion campaign to boost its potash capacity by more than 5 million tonnes over the next 10 years. For the fiscal third quarter, Mosaic expects to ship 1.9 million to 2.1 million tonnes of potash. During the fiscal second quarter, sales of potash rose 69 percent. Mosaic’s overall revenue rose 56.4 percent to $2.67 billion. Disclaimer: The assembled information distributed by epicstockpicks.com is for information purposes only, and is neither a solicitation to buy nor an offer to sell securities. Epicstockpicks.com does expect that investors will buy and sell securities based on information assembled and presented herein. EpicStockPicks.com will not be responsible in any way for or accept any liability for any losses arising from an investor's reliance on or use of information obtained from our website or emails. PLEASE always do your own due diligence, and consult your financial advisor.
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