Fertilizer manufacturer mosaic ((MOS), Nutrien ((NTR) and Intrepid Kali ((IPI) reported a better-than-expected result for the first quarter late on Monday. MOS stock fell in late trading. NTR stock was sharp and IPI stock was inactive after both closed near the buy points.
With corn and soybean prices soaring and a sudden agricultural boom, these agricultural stocks have seen their own growth spurts. IBD’s chemical-agricultural industry group ranks 31st out of 197 based on price trends and dynamics.
The profit parade continues on Tuesday morning as an agricultural commodity supplier Bunge ((BG) Reports. Manufacturer of insecticides and herbicides FMC ((FMC) and play pure nitrogen fertilizer CF Industries ((CF.) Report on late Wednesday. FMC stocks and CF stocks are located near the buy area.
For an in-depth look at the outlook for these farm stocks, check out this industry snapshot dated April 30th. Five agricultural stocks overtake the market as corn prices rally.
Estimates: Mosaic’s earnings should rise to 50 cents per share, compared to a 6 cents loss a year ago, according to Zacks Investment Research. Revenue increased 29% to $ 2.31 billion.
Results: Mosaic’s earnings were 57 cents per share and sales rose to $ 2.37 billion.
MOS shares are number 1 in the agrochemicals group with an IBD composite rating of superlative 99, which combines technical and fundamental factors in a single rating. IBD Research shows that the top market winners often have an IBD composite rating of 95 or higher early on in their big strides.
The mosaic shares fell 3.8% in extended trading. The MOS share fell 0.4% on Monday to 35.04 and stayed around the level of mid-March.
MOS stock remains constructive after its retreat, having risen to 35.20 on March 18. The recent five-week consolidation is not long enough to see 35.30, 10 cents above March high as a suitable entry point. Investors could continue to use this as an entry, although MOS stock is gaining some distance from the 10 week line.
Alternatively, Mosaic stock could retire or pause, creating a new buying opportunity.
Estimates: Nutrien earnings per share are expected to be 9 cents compared to a loss of 12 cents last year. Revenue increased 11% to $ 4.64 billion.
Results: Nutrien earnings rose to 29 cents per share. Revenue increased 11% to $ 4.66 billion.
Outlook: Nutrien raised its full year EPS forecast to $ 2.55-3.25 from the February forecast of $ 2.05-2.75.
Nutrient supply: NTR stock gained 0.5% in late trading. The Nutrien share closed on Monday 1.4% to 55.96 and was thus back above its 50-day mark. The fertilizer inventory thus rose to 6% of a purchase point from 59.87 within seven weeks flat base. Movement above last Thursday’s high of 57.50 could provide an early entry into the 50-day phase.
Intrepid potash income
Estimates: Intrepid Potash should post earnings per share of 13 cents compared to a loss of 20 cents last year. Revenue should decrease 9% to $ 58.1 million.
Results: Intrepid Potash’s earnings rose to 18 cents per share, and sales soared nearly 12% to $ 71.46 million.
Intrepid stock: IPI stock was quiet in its first off-hours trading. Interpid stock rose 4.1% to 33.49 on Monday and rebounded from its 50-day line. That’s still 14% less than a buy point of 39.29, 10 cents more than the consolidation peak since March 18 MarketSmith analysis. Investors could buy IPI stocks outside the 50-day line, especially if they are above last week’s high of 34.49 as an early entry level.
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