Mosaic Earnings Cheat Sheet: Fifth Consecutive Quarter of Double-Digit Revenue Growth

Mosaic Company (NYSE:MOS) reported net income above Wall Street’s expectations for the most recent quarter. The Mosaic Co. is a producer and marketer of concentrated phosphate and potash crop nutrients for the global agriculture industry.

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Mosaic Company, The Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the agricultural chemicals company rose to $649.2 million ($1.45 per share) vs. $396.1 million (88 cents per share) in the same quarter a year earlier. This marks a rise of 63.9% from the year earlier quarter.

Revenue: Rose 53.8% to $2.86 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: The company topped the mean analyst estimate of $1.38 per share.

Quoting Management: “Our fourth quarter results were very strong as global demand for Mosaic’s crop nutrient products remained robust,” said Jim Prokopanko, President and Chief Executive Officer of Mosaic. “Fiscal 2011 was an exceptional year for Mosaic. We generated strong earnings and cash flow due to higher shipments, increased prices and strong operating performance, especially in our Phosphates segment in the face of an often challenging environment. In addition, we completed the complex split-off from Cargill which gives us increased strategic and financial flexibility.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 41%, with the biggest boost coming in the second quarter when revenue rose 56.4% from the year earlier quarter.

From the third quarter, the company’s current liabilities rose to $1.93 billion from $1.53 billion.

Gross margin shrank 2.2 percentage points to 34.8%. The contraction appeared to be driven by increased costs, which rose 59.1% from the year earlier quarter while revenue rose 53.8%.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 13 cents in the third quarter and by 11 cents in the second quarter.

Competitors to Watch: Potash Corp./Saskatchewan (NYSE:POT), Agrium Inc. (NYSE:AGU), CF Industries Hldgs., Inc. (NYSE:CF), Intrepid Potash, Inc. (NYSE:IPI) and Converted Organics Inc. (NASDAQ:COIN).

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(Source: Xignite Financials)

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