Mosaic Shares Slip Post Q1 Results, Misses Revenue Estimate

Mosaic Co MOS reported first-quarter sales growth of 70.7%% year-over-year to $3.92 billion, missing the consensus of $4.08 billion.
Potash operating earnings totaled $563 million, and Adjusted EBITDA totaled $651 million in Q1
Phosphates operating earnings totaled $493 million, and Adjusted EBITDA totaled $632 million in Q1.
Mosaic Fertilizantes operating earnings totaled $187 million, and Adjusted EBITDA totaled $233 million in Q1.
The gross margin expanded to 36.7% from 18.9% in 1Q21. The operating income increased by 301% Y/Y to $1.26 billion, and the margin was 32%, up by 1,838 bps.
Adjusted EPS was $2.41, in line with the consensus of $2.41.
Adjusted EBITDA improved ~160% Y/Y to $1.45 billion, and margin expanded by 1,262 bps to 37%.
Net cash provided by operating activities was $506 million, and free cash flow was $466 million.
“Looking forward, we expect higher annual production across our global platform in both potash and phosphates as a result of the completed ramp-up of Esterhazy K3, a higher run-rate at Colonsay, and a recovery of phosphate output from our North American operations,” commented Joc O’Rourke, President and CEO.
Mosaic expects Phosphate segment sales volumes of 1.9-2.1 million tonnes and Potash sales volumes of 2.4-2.6 million tonnes in Q2.
For phosphates, DAP prices on a FOB basis are expected to be $140-$160 per tonne higher than prices in the first quarter.
Mosaic repurchased $422 million in shares during the first quarter, which includes the execution of the previously announced Accelerated Share Repurchase.
It expects a total Capital Expenditure of ~$1.3 billion for FY22.
Price Action: MOS shares are trading lower by 2.88% at $60.60 during the post-market session on Monday.

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