Mosaic Misses EPS Estimates On Higher Costs

Mosaic Company MOS reported earnings on Monday with an EPS miss on higher costs. MOS's reported 1Q was $0.67, below our estimate of $0.73 and the consensus of $0.72. Most of the 1Q miss was due to lower than expected gross margins in the phosphate segment, a result of higher raw material costs and the impact of higher than expected rock costs. MOS expects most of the benefit from higher potash prices will come in fiscal 3Q. These negatives are somewhat offset by the company's market capitalization, dominant market positions in phosphates and potash, and improving balance sheet. Mosaic closed Monday at $58.79