Shares of Mosaic Co. (MOS) are higher on the session by 4 percent despite disappointment over the co.’s bottom line in the latest quarter that trailed analysts’ estimates.
The world’s largest maker of phosphate fertilizer missed EPS estimates by a nickel on better than expected revenue in the three months through August, but all that matters is the outlook. During the co.’s cc the management pointed out that farm prices are up and fertilizer demand is strong. In fact, the prices of diammonium phosphate [DAP] and other phosphate-based fertilizers have soared on a y/y basis. DAP for instance, was sold for $431 per tonne on average in the quarter, 55% more than a year earlier.
Mosaic, North America’s second-largest fertilizer producer, said net income nearly tripled to $297.7 million, or $0.67 per share, compare to $100.6 million, or $0.23 per share, in the same quarter last year. Sales increased 50% to $2.19 billion, from $1.46 billion y/y.
Mosaic also said its gross margin as a percent of net sales came in at 23%, compared to 15% in the prior year.
MOS shares, which printed a HOD of $61.95, the highest intraday pps since Sept. 16., are currently up $2.22 to $61.01.