What to Expect When Mosaic (MOS) Reports Earnings Tomorrow

Mosaic (MOS) scheduled to release its 2015 third quarter earnings report before the market open on Tuesday morning.
By Amanda Schiavo ,

NEW YORK (TheStreet) -- Mosaic Co. (MOS) - Get Report is scheduled to release its 2015 third quarter earnings report before the market open on Tuesday morning.

Analysts are expecting the fertilizer company to post a year over year decline in earnings per share but a slight rise in revenue for the most recent quarter.

The company has been forecast to report earnings of 53 cents per share on revenue of $2.33 billion for the most recent quarter by analysts surveyed by Thomson Reuters.

Mosaic's earnings came in at 56 cents per share on revenue of $2.25 billion for the 2014 third quarter.

Shares of Mosaic are up by 1.09% to $34.16 at the start of trading on Monday morning.

Mosaic is a Plymouth, MN-based producer and marketer of concentrated phosphate and potash crop nutrients.

Separately, TheStreet Ratings team rates MOSAIC CO as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

We rate MOSAIC CO (MOS) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, generally disappointing historical performance in the stock itself and poor profit margins.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Net operating cash flow has decreased to $583.10 million or 26.77% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • MOS has underperformed the S&P 500 Index, declining 18.87% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • The gross profit margin for MOSAIC CO is currently lower than what is desirable, coming in at 32.43%. Regardless of MOS's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, MOS's net profit margin of 15.70% compares favorably to the industry average.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. In comparison to the other companies in the Chemicals industry and the overall market, MOSAIC CO's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • You can view the full analysis from the report here: MOS
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