Mosaic reports doubling of earnings; holding of this Covestor model (NYSE: MOS)

Fertilizer provider Mosaic Company (NYSE: MOS) reported earnings last night. Strong results, on the back of a rise in phosphate and potash fertilizer prices, which were in turn driven by a rise in food demand. From Reuters:

The company’s revenue jumped 30 percent [year over year] to $2.21 billion, although Wall Street had expected $2.34 billion, according to Thomson Reuters I/B/E/S. During the fiscal third quarter ended Feb. 28, Mosaic earned $542.1 million, or $1.21 per share, compared with $222.6 million, or 50 cents per share, in the year-ago period. Analysts expected earnings of $1.07 per share.

The stock slipped in after hours trading following the report – the Street was expecting even better revenue results.

Mosaic is a holding of just one Covestor model (as of end of day 3/29/11): Dividend and Income Plus from 401 Advisor. The portfolio aims to provide stable value while producing a high yield, targeting 8% yield. Manager Bill DeShurko uses fundamental research in order to assess dividend stability and growth. The model is typically invested 80% in domestically listed securities and 20% in a long US index fund, cash or short ETF for principal stability.

DeShurko, based in Centerville, OH, describes his motivation for the model:

I started this portfolio in response to clients’ needs. My clients have worked to hard to go through retirement, living off of 1%-2% yields from the bank, or risking their capital by investing in growth investments that haven’t grown.

The portfolio launched on Covestor in January, 2011 and has a risk score of 2. For more information, check out the profile page for 401 Advisor, or the model page.


“High prices help Mosaic offset mine, shipping woes” Ernest Scheyder. Reuters, 3/30.

“Mosaic Falls as Third-Quarter Revenue Trails Analyst Estimates” Christopher Donville. Bloomber, 3/31.