Mosaic Jumps After 3rd-Quarter Profit Rises on Higher Prices, Tops Street Expectations
NEW YORK (AP) -- Shares of potash maker Mosaic Co. soared in Friday morning trading, after fiscal third-quarter profit jumped more than tenfold on higher prices.
The stock rose $8.97, or 8.6 percent, to $113.49 early in the session, as the quarterly results also topped Wall Street expectations because of strength in potash prices.
Goldman Sachs analyst Edlain Rodriguez forecast even higher prices for potash because of strong international demand for food, animal feed and fuel.
"With strong demand in the international markets, more discipline from global producers, solid agricultural commodity prices and extremely tight inventories, global prices should continue moving higher," Rodriguez wrote in a client note.
Rodriguez forecast higher earnings in the next two years and advised investors buy the stock.
Pricing for potash, a fertilizer, has been supported by factors that include rising demand for ethanol, a fuel made from corn.
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