An Eye on Financial Results: Mosaic Company (NYSE: MOS)

On Wednesday, Shares of Mosaic Company (NYSE: MOS) lost -0.61% to $27.62. The stock opened its trade at $27.95 and after floating in a price range of $27.52 to $28.08; the stock grabbed the investor’s attention and traded 2.18M shares as compared to its average daily volume of 4.17M shares. The stock’s institutional ownership stands at 77.50%.

The Mosaic Company (MOS) recently stated first quarter 2018 net earnings of $42.0M, contrast to a net loss of $1.0M in the first quarter of 2017. First quarter earnings per share were $0.11, which included a negative impact of $0.09 per share from notable items, mainly related to non-cash currency translation charges and costs related to the Vale Fertilizantes acquisition, partially offset by discrete tax items. Adjusted earnings per share during the first quarter of 2018 were $0.201. Adjusted earnings were negatively influenced by the late spring and other weather related issues, counting underperformance of Canadian rail providers, which negatively influenced phosphate and potash sales volumes and unit costs, and was the primary driver of an about $290.0M increase in working capital.

Mosaic’s net sales in the first quarter of 2018 were $1.90B, contrast to $1.60B last year, mainly driven by the acquisition of Vale Fertilizantes. Operating earnings during the quarter were $81.0M, up from $30.0M a year ago, driven by higher gross margins in all three operating segments.

Cash flow used by operating activities in the first quarter of 2018 was $71.0M contrast to cash flow offered by operating activities of $146.0M in the prior year. The current period reflects a noteworthy increase in working capital ahead of the delayed peak fertilizer season, as well as weather and logistics issues. Capital expenditures totaled $223.0M in the quarter. Mosaic’s total cash and cash equivalents, excluding restricted cash, were $659.0M and long-term debt was $5.10B as of March 31, 2018. Subsequent to quarter end, the Company used $100.0M in cash to further reduce long-term debt.

MOS has a market value of $10.65B while its EPS was booked as $1.11 in the last 12 months. The stock has 385.69M shares outstanding. In the profitability analysis, the company has gross profit margin of 12.30% while net profit margin was -0.80%. Beta value of the company was 1.20; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 2.50.

Grover Beam

Grover Beam has over 14 years experience in the financial services industry giving him a vast understanding of how news affects the financial markets. He is an active day trader spending the majority of her time analyzing earnings reports and watching commodities and derivatives. He has a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.