Mosaic First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Mosaic (NYSE:MOS) will unveil its latest earnings tomorrow, Tuesday, October 2, 2012. The Mosaic Company is a producer and marketer of concentrated phosphate and potash crop nutrients for the global agriculture industry.

Mosaic Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.15 per share, a decline of 1.7% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.20. Between one and three months ago, the average estimate moved down. It also has dropped from $1.16 during the last month. Analysts are projecting profit to rise by 11.8% versus last year to $5.03.

Last quarter, the company came in at profit of $1.19 per share against a mean estimate of net income of $1.17 per share, beating estimates after missing them in the previous quarter. In the third quarter of the last fiscal year, it missed forecasts by 4 cents.

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A Look Back: In the fourth quarter of the last fiscal year, profit fell 21.9% to $507.3 million ($1.18 a share) from $649.2 million ($1.45 a share) the year earlier, but exceeded analyst expectations. Revenue fell 1.4% to $2.82 billion from $2.86 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.43 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 3.67 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 18.8% to $1.92 billion while assets rose 11% to $6.58 billion.

Analyst Ratings: With 14 analysts rating the stock a buy, none rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

After experiencing income drops the past three quarters, the company is hoping to use this earnings announcement to rebound. Net income fell 39.2% in the second quarter of the last fiscal year, by 49.6% in the third quarter of the last fiscal year and again in the fourth quarter of the last fiscal year.

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 1.1% in the third quarter of the last fiscal year and dropped again in the fourth quarter of the last fiscal year of the last fiscal year.

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

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