Fertilizer Manufacturer Mosaic Misses Estimates

Fertilizer manufacturer Mosaic Co. reported quarterly earnings of $0.32 / share Tuesday after the bell, missing estimates by $0.03. Revenue fell to $1.71 billion from $3.01 billion for the same quarter last year, a 43.2% drop. Shares closed the day at $63.15, up $1.44.

Immediately following the earnings announcement, shares sold off about 2% to $62, but slowly began to rebound as the earnings call progressed. By 6 PM, shares rebounded to $63, where they have leveled out, down about $0.30, or 0.48%.

The likely reason behind the lack of a sell-off on this earnings miss by what is normally a relatively volatile stock is the recent string of upgrades in the agriculture/chemical sector. A slew of companies, MOS included, have been rallying hard the past couple days on Goldman’s upgrade yesterday and then several more today.

The technicals look fairly decent right now for MOS, though we’ll really have to wait and see how it trades tomorrow before we can judge them for sure. After trading in a pretty range from July to December, share finally broke through the $55.50 level on 12/1 on strong volume. The stock went as high as $62.50 before testing and holding prior resistance on 12/18 and then getting shot back down from the $62 – level on 12/28. Shares finally pushed through the near-term resistance at $62.50 today, which generally would have signaled a good entry point, if not for the earnings miss after hours.

All things considered, the late trading has been pretty impressive, and if it can hold $62.50 by tomorrow’s close, you can consider this a buy. If it falls beneath, which very well may happen, I’d wait until it pushes through resistance again before jumping in.

Disclosure: No positions in MOS.

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