Fertilizer makers Mosaic (MOS), Nutrien (NTR) and Intrepid Potash (IPI) reported better-than-expected first-quarter earnings late Monday, with. MOS stock fell in late trading. NTR stock edged and IPI stock was not yet active after both closed near buy points.
With corn and soybean prices surging, and the farm economy enjoying a sudden boom, these agricultural stocks have been enjoying their own growth spurts. IBD’s Chemical-Agricultural industry group is ranked in the top tier, No. 31 out of 197 based on price performance and momentum.
The earnings parade continues Tuesday morning, when agricultural commodities supplier Bunge (BG) reports. Insecticide and herbicide giant producer FMC (FMC) and nitrogen fertilizer pure-play CF Industries (CF) report late Wednesday. FMC stock and CF stock are near buy range.
For an in-depth look at the outlook for these agricultural stocks, check out this April 30 Industry Snapshot, Five Agriculture Stocks Outrunning The Market As Corn Prices Rally.
Estimates: Mosaic earnings were expected to surge to 50 cents a share vs. a year-ago loss of 6 cents, according to Zacks Investment Research. Revenue was seen rising 29% to $2.31 billion.
Results: Mosaic earnings came in at 57 cents a share with revenue rising to $2.37 billion.
MOS stock is rated No. 1 in the Agricultural-Chemicals group with a superlative 99 IBD Composite Rating, which combines technical and fundamental factors into a single score. IBD Research shows the best stock market winners often have an IBD Composite Rating of 95 or higher at the start of their big moves.
Mosaic stock retreated 3.8% in extended trade. MOS stock dipped 0.4% on Monday to 35.04, holding around its mid-March level.
MOS stock continues to behave constructively following its pullback after running up as high as 35.20 on March 18. The recent five-week consolidation isn’t quite long enough to consider 35.30, 10 cents above the March high, a proper entry point. Investors could still use that as an entry, though MOS stock is getting some distance vs. the 10-week line.
Alternatively, Mosaic stock could pullback or pause, forming a new buying opportunity that way.
Estimates: Nutrien earnings per share are expected to come in at 9 cents vs. a year-ago loss of 12 cents. Revenue was seen rising 11% to $4.64 billion.
Results: Nutrien earnings stepped up to 29 cents a share. Revenue climbed 11% to $4.66 billion.
Outlook: Nutrien raised its full-year EPS guidance to $2.55-$3.25 vs. its February guidance of $2.05-$2.75.
Nutrien stock: NTR stock edged up 0.5% in late trade. Nutrien stock closed up 1.4% to 55.96 on Monday, back above its 50-day line. That lifted the fertilizer stock to within 6% of a 59.87 buy point in a seven-week flat base. A move above last Thursday’s high of 57.50 could offer an early entry from the 50-day.
Intrepid Potash Earnings
Estimates: Intrepid Potash was expected to report EPS of 13 cents vs. a year-ago loss of 20 cents. Revenue was expected to fall 9% to $58.1 million.
Results: Intrepid Potash earnings jumped to 18 cents a share with sales up nearly 12% to $71.46 million.
Intrepid stock: IPI stock was quiet in initial after-hours trade. Interpid stock jumped 4.1% on Monday to 33.49, rebounding from its 50-day line. That’s still 14% below a 39.29 buy point, 10 cents above the top of the consolidation since March 18, according to MarketSmith analysis. Investors could buy IPI stock off the 50-day line, especially if it gets above last week’s high of 34.49, as an early entry.
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