The Mosaic Company (MOS) is a leading producer and marketer of concentrated phosphate and potash crop nutrients for the global agriculture industry, based in Tampa, Florida. Valued at $9.2 billion by market cap, the company is expected to announce its fiscal Q2 earnings results after the market closes on Tuesday, Aug. 6.
Ahead of this event, analysts expect MOS to report a profit of $0.68 per share, down 34.6% from $1.04 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. However, in the most recent quarter, the company reported an EPS of $0.65, exceeding the consensus estimate by a margin of 8.3%.
For fiscal 2024, analysts expect MOS to report EPS of $2.59, down 27.5% from $3.57 in fiscal 2023.
MOS stock decreased 18.6% on a YTD basis, lagging behind both the S&P 500 Index's ($SPX) 13.8% rise and the S&P 500 Materials Sector SPDR's (XLB) 5.2% gain over the same period.
Despite beating profit estimates, shares of Mosaic fell 4.7% on May 1 due to its lower-than-expected Q1 revenue. Lower prices for its fertilizer products further exacerbated this decline in share price. Plus, the announcement that the Colonsay potash mine would remain idle until market conditions improve, coupled with a general decline in crop prices and reduced crop nutrient application due to droughts in Brazil, contributed to investor concerns.
Analysts' consensus rating on Mosaic stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 15 analysts covering the stock, opinions include six "Strong Buys," eight "Holds," and one "Strong Sell." This configuration has remained steady over the past three months.
The average analyst price target for MOS is $36.33, suggesting a modest potential upside of 27.2% 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.
