Mosaic, Red Hat: After-Hours Trading

NEW YORK ( TheStreet) -- Shares of Mosaic ( MOS) lost ground in late trades after the Kingston, Minn. company missed Wall Street's profit expectations for its fiscal third-quarter results, citing lower potash volumes and higher phosphate raw material costs for a year-over-year decline in earnings of nearly 50%.

For the three months ended Feb. 29, Mosaic reported earnings of $273.3 million, or 64 cents a share, down from a year-ago equivalent profit of $542.1 million, or $1.21 a share, and below the average estimate of analysts polled by Thomson Reuters for earnings of 74 cents a share.



Sales totaled $2.19 billion for the quarter, a slight drop from $2.21 billion a year ago, but above the average analysts' estimate of $2.13 billion.

The stock was last quoted at $56.90, down 2.3%, on volume of more than 330,000, according to Nasdaq.com.

Mosaic said its gross margin came in at $522 million, or 24% of sales in the most recent quarter, down from $854 million, or 39% of sales in the same period a year earlier.

"The Potash segment's operating results reflect delayed purchases, as buyers remained cautious," said Jim Prokopanko, the company's president and CEO. "While the seasonal lull and risk aversion slowed sales in the third fiscal quarter, we continue to expect near-record global shipments in 2012 and a very strong North American spring season. During the quarter, we produced 1.8 million tonnes and positioned inventory to capture global demand as it emerges."

Based on Wednesday's regular session close at $58.22, Mosaic shares were up 16% so far in 2012, but down more than 25% in the past year. The stock's 52-week high of $83.41 dates back to April 5.

Check out TheStreet's quote page for Mosaic for year-to-date share performance, analyst ratings, earnings estimates and much more.

Red Hat

Shares of Red Hat ( RHT) jumped in the extended session after the open source software company delivered an above-consensus quarterly profit and unveiled a $300 million buyback program.

The company reported a non-GAAP adjusted profit of $57.2 million, or 29 cents a share, on revenue of $297 million, up more than 20% from last year. The average estimate of analysts polled by Thomson Reuters was for earnings of 27 cents a share in the February-ended period on revenue of $291.2 million.

"Red Hat is the first pure-play, open source company, and one of only a select few software companies, to have achieved the billion dollar revenue milestone," said Jim Whitehurst, the company's president and CEO, in a statement. "The open source technologies which we provide are being selected by more customers every day as they re-architect the infrastructure of their data centers for greater efficiency, agility and cloud enablement."

The stock was last quoted at $55.90, up 9%, on volume of more than 650,000, according to Nasdaq.com.

Also drawing some trading interest after the bell was Red Lion Hotels ( RLH), which announced plans to explore its strategic options.

The company said its board has hired Bank of America Merrill Lynch to look at ways to "maximize shareholder value, including a potential sale of the company or a strategic combination with a third party."

Red Lion has formed a strategic committee comprised of three independent directors to work with B of A on the review. The stock ran as high as $9.19 in extended trades but volume was light.

The company didn't put any time constraints on the evaluation period, and said it would not be disclosing any developments unless or until a final decision is made.

-- Written by Michael Baron in New York.

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