Mosaic Earnings: Revenues Fall, Bringing Down Profit

Mosaic Company The (NYSE:MOS) posted a decrease in profit as revenue declined. The Mosaic Company 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 First Quarter

Results: Net income for the fertilizers fell to $429.4 million ($1.01 per share) vs. $526 million ($1.17 per share) a year earlier. This is a decline of 18.4% from the year-earlier quarter.

Revenue: Fell 18.8% to $2.51 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Mosaic Company reported adjusted net income of $1.03 per share. By that measure, the company fell short of mean estimate of $1.15 per share. Analysts were expecting revenue of $2.54 billion.

Quoting Management: “The long-term outlook for crop nutrition is outstanding, and Mosaic is well positioned as the world’s largest potash and phosphates producer,” said Jim Prokopanko, President and Chief Executive Officer of Mosaic. “Drought and other weather-related issues in several of the world’s key agricultural regions severely impacted this year’s corn, soybean and wheat crops and provided a vivid reminder of just how tenuous global food security is. Our products are essential in helping the world grow the food it needs.”

Key Stats:

The company has now seen net income fall for four straight quarters. In the fourth quarter of the last fiscal year, net income fell 21.9% while the figure fell 49.6% in the third quarter of the last fiscal year and 39.2% in the second quarter of the last fiscal year.

Revenue has fallen for the last three quarters in a row. In the fourth quarter of the last fiscal year, revenue declined 1.4% to $2.82 billion while the figure fell 1.1% in the third quarter of the last fiscal year from the year earlier.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of $1.19 versus a mean estimate of net income of $1.17 per share.

Last quarter, gross margins grew by 2.3 percentage points from the year-earlier quarter to 29.8%. This ends a streak of two consecutive quarters of shrinking margins.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from $1.38 a share to $1.32 over the last sixty days. The average estimate for the fiscal year is now $5.03 per share, down from $5.10 sixty days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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