With a market cap of $8.4 billion, The Mosaic Company (MOS) operates in the agricultural chemicals industry. Based in Tampa, Florida, it is a leading global producer of concentrated phosphate and potash, which are essential crop nutrients for the agriculture sector. The company is expected to announce its fiscal Q3 earnings results on Tuesday, Nov. 5.
Ahead of this event, analysts expect the fertilizer maker to report a profit of $0.58 per share, a decrease of 14.7% from $0.68 per share in the previous year's quarter. The company has surpassed Wall Street's bottom-line estimates in one of the past four quarters while missing on three other occasions. In the most recent quarter, the company missed the consensus EPS estimate by 20.6% margin.
For fiscal 2024, analysts expect MOS to report EPS of $2.27, down 36.4% from $3.57 in fiscal 2023.
On a YTD basis, MOS saw a decline of 26.5%, lagging behind both the S&P 500 Index's ($SPX) nearly 23% rise and the Materials Select Sector SPDR Fund's (XLB) 14.1% gain over the same period.
Shares of Mosaic fell 1.4% following its Q2 earnings release on Aug. 6 due to lower-than-expected adjusted EPS of $0.54 and revenue of $2.8 billion. The company also reported a net loss of $161.5 million, compared to a profit of $369 million in the same quarter last year, signaling a significant deterioration in profitability. Additionally, significant declines in sales across key segments, particularly in Potash and Fertilizantes, indicated weakening demand and pricing pressures.
Analysts' consensus rating on Mosaic's stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 14 analysts covering the stock, opinions include five "Strong Buys," eight "Holds," and one "Strong Sell." This configuration is slightly less bullish than three months ago, with six analysts suggesting a "Strong Buy." The average analyst price target for MOS is $32.73, suggesting a modest potential upside of 24.6% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
