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Showing posts from May, 2017

Mosaic Co (NYSE:MOS) 1Q2017 Earnings Preview

Mosaic (NYSE:MOS) will announce its 1Q2017 (Jan - Mar 2017) earnings on 2 May 2017, BMO.

The consensus earnings expectation for this quarter is $0.22, with a high/low of $0.70 / $0.00.

We examine the fundamentals driving the business on a QoQ basis to assess where the actual are likely to like compared to the consensus forecast.

MOS manufactures DAP & MAP (phosphates), and Potash (MOP) fertilizers. DAP/MAP manufacturing involves phosphatic rock, or phosrock, that MOS mines in Florida, along with sulfur (to manufacture sulfuric acid), and various concentrations of ammonia, to manufacture DAP & MAP.

MOP is mined primarily in Canada at MOS-owned mines, and also in a much smaller quantity, in the US, also at company-owned mines.

The price behavior of these components along with the end-products is depicted below:

Gross Margins
The key line to watch here is the sea-green one, DAP Processing Margin. That's the gross margin, the fob DAP product price less the input costs, namely s…