The Mosaic Company MOS reported a net income of $169 million or 53 cents for fourth-quarter 2024, down from $365.3 million or $1.06 per share in the year-ago quarter.

Barring one-time items, adjusted earnings per share were 45 cents, missing the Zacks Consensus Estimate of 53 cents.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Net sales declined nearly 10.6% year over year to $2,815.9 million in the quarter. The metric missed the Zacks Consensus Estimate of $2,929.4 million. Lower selling prices and volumes in the Potash unit partly caused the downside.

MOS’s Segment Highlights

Net sales in the Potash segment were $557 million in the reported quarter, down around 26.5% from $758 million in the prior-year quarter. The figure beat our estimate of $518.5 million. Sales volumes totaled 2.2 million tons, down 15.4% year over year. The figure missed our estimate of 2.3 million tons. The segment’s gross margin declined to $55 per ton from $99 per ton in the year-ago quarter.

The Phosphate division’s net sales were $1,165 million, up 8.8% from $1,070 million in the prior-year period. The figure topped our estimate of $1,157.8 million. Sales volumes in the segment totaled 1.62 million tons, up 2.5% year over year, lagging our estimate of 1.7 million tons. The gross margin in the quarter was $85 per ton, down from $88 per ton in the year-ago quarter.

Net sales in the Mosaic Fertilizantes segment were around $1,088 million in the quarter, down about 8.7% year over year. The figure beat our estimate of $1,141.3 million. Sales volume in the quarter rose 3.7% to 2.2 million tons. The gross margin in the quarter was $46 per ton, up from $44 per ton in the prior-year quarter.

Mosaic’s Financials

At the end of the quarter, Mosaic had cash and cash equivalents of $273 million, down 21.8% year over year. Long-term debt was $3,332.3 million, up 3.1% year over year.

Net cash provided by operating activities declined nearly 59.2% year over year to $219.3 million in the reported quarter.

MOS’s FY24 Results

For full-year 2024, Mosaic recorded a net income of $174.9 million or 55 cents, down from $1,164.9 million $3.50 per share a year ago. The company's adjusted EBITDA for the same period was $2.2 billion. Mosaic's revenues for the year totaled $11.1 billion, down 18.9% year over year.

MOS’ Outlook

Per MOS, phosphate markets are likely to stay tight due to ongoing supply limitations and rising demand for fertilizers, fuel and industrial uses. China's phosphate export outlook remains positive for the long term, as domestic consumption and industrial needs will continue to take precedence over fertilizer exports.

Potash markets are expected to improve in the short to medium term, driven by output cuts from major producers in Russia, Belarus and China, along with challenges to planned expansions in Laos. The potential impact of tariffs on Canadian potash exports to the United States remains uncertain. However, if the tariffs are imposed as initially proposed, they could cause significant disruptions in global potash trade and logistics. This would likely lead to higher prices, with U.S. farmers bearing the additional costs. Nevertheless, the company expects potash to remain affordable and demand to stay strong both in North America and globally.

MOS’s Price Performance

Shares of Mosaic have lost 19.5% in the past year compared with a 6% decline of the industry.

Image Source: Zacks Investment Research

MOS’s Zacks Rank & Key Picks

MOS currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks worth a look in the basic materials space include Orla Mining Ltd. ORLA, Fortuna Mining Corp. FSM and Kronos Worldwide KRO.

Orla is slated to report fourth-quarter results on March 18. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 8 cents. ORLA beat the Zacks Consensus Estimate in two of the last four quarters while missing once and meeting on the other occasion, with the average earnings surprise being 97.9%. ORLA carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Fortuna is scheduled to release fourth-quarter results on March 5. The Zacks Consensus Estimate for FSM’s fourth-quarter earnings is pegged at 16 cents. FSM, a Zacks Rank #2 stock, has gained around 64.6% in the past year. FSM beat the Zacks Consensus Estimate in two of the last four quarters, while missing twice, with the average earnings surprise being 53.5%

Kronos is expected to report fourth-quarter results on March 5. The consensus estimate for KRO’s fourth-quarter earnings is pegged at 11 cents. KRO, carrying a Zacks Rank #2, beat the consensus estimate in three of the last four quarters while missing once, with the average earnings surprise being 41.7%. 

 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

The Mosaic Company (MOS) : Free Stock Analysis Report

Kronos Worldwide Inc (KRO) : Free Stock Analysis Report

Fortuna Mining Corp. (FSM) : Free Stock Analysis Report

Orla Mining Ltd. (ORLA) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research